DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Abstract] | |
Document Type | 40-F |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Entity Registrant Name | Pembina Pipeline Corp |
Entity Central Index Key | 0001546066 |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Common Stock, Shares Outstanding (in shares) | 547,753,878 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | [1] |
Current assets | |||
Cash and cash equivalents | $ 129 | $ 157 | [2] |
Trade receivables and other (Note 7) | 692 | 604 | |
Inventory | 126 | 198 | |
Derivative financial instruments (Note 24) | 40 | 54 | |
Current assets | 987 | 1,013 | |
Non-current assets | |||
Property, plant and equipment (Note 8) | 18,775 | 14,730 | |
Investments in equity accounted investees (Note 10) | 5,954 | 6,368 | |
Intangible assets and goodwill (Note 9) | 6,429 | 4,409 | |
Right-of-use assets (Note 13) | 822 | ||
Advances to related parties and other assets (Note 27) | 186 | 144 | |
Non-current assets | 32,166 | 25,651 | |
Total assets | 33,153 | 26,664 | |
Current liabilities | |||
Trade payables and other (Note 12) | 1,013 | 803 | |
Loans and borrowings (Note 14) | 74 | 480 | |
Dividends payable | 110 | 97 | |
Lease liabilities | 112 | ||
Contract liabilities (Note 18) | 39 | 37 | |
Taxes payable | 103 | 67 | |
Derivative financial instruments (Note 24) | 6 | 6 | |
Current liabilities | 1,457 | 1,490 | |
Non-current liabilities | |||
Loans and borrowings (Note 14) | 10,078 | 7,057 | |
Lease liabilities | 707 | ||
Decommissioning provision (Note 15) | 864 | 569 | |
Contract liabilities (Note 18) | 192 | 131 | |
Deferred tax liabilities (Note 11) | 2,906 | 2,774 | |
Other liabilities | 179 | 239 | |
Non-current liabilities | 14,926 | 10,770 | |
Total liabilities | 16,383 | 12,260 | |
Equity | |||
Attributable to shareholders | 16,710 | 14,344 | |
Attributable to non-controlling interest | 60 | 60 | |
Total equity | 16,770 | 14,404 | [3] |
Total liabilities and equity | $ 33,153 | $ 26,664 | |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. | ||
[2] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. | ||
[3] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - CAD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | |
Statement of profit or loss and other comprehensive income [abstract] | |||
Revenue (Note 18) | $ 7,230 | $ 7,351 | |
Cost of sales | 5,187 | 5,457 | |
Gain on commodity-related derivative financial instruments | (20) | (22) | |
Share of profit from equity accounted investees (Note 10) | 370 | 411 | |
Gross profit | 2,433 | 2,327 | |
General and administrative | 296 | 279 | |
Other expense | 15 | 27 | |
Impairment of investment in equity accounted investees (Note 10) | 300 | 0 | [2] |
Results from operating activities | 1,822 | 2,021 | |
Net finance costs (Note 19) | 294 | 279 | |
Earnings before income tax | 1,528 | 1,742 | |
Current tax expense (Note 11) | 210 | 70 | |
Deferred tax (recovery) expense (Note 11) | (174) | 394 | |
Income tax expense | 36 | 464 | |
Earnings attributable to shareholders | 1,492 | 1,278 | [2] |
Other comprehensive (loss) income | |||
Exchange (loss) gain on translation of foreign operations | (213) | 330 | |
Remeasurements of defined benefit liability, net of tax (Note 22) | (6) | (6) | |
Total comprehensive income attributable to shareholders | 1,273 | 1,602 | |
Earnings attributable to common shareholders, net of preferred share dividends (Note 21) | $ 1,361 | $ 1,157 | |
Earnings per common share - basic (in CAD per share) | $ 2.66 | $ 2.28 | |
Earnings per common share - diluted (in CAD per share) | $ 2.65 | $ 2.28 | |
Weighted average number of common shares (millions) | |||
Basic (in shares) | 512 | 505 | |
Diluted (in shares) | 514 | 509 | |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. | ||
[2] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CAD ($) $ in Millions | Total | Common share capital | Preferred share capital | Issued capitalCommon share capital | Issued capitalPreferred share capital | Deficit | DeficitCommon share capital | DeficitPreferred share capital | Accumulated Other Comprehensive (Loss) Income | Total | TotalCommon share capital | TotalPreferred share capital | Non-Controlling Interest | |||
Equity, beginning balance at Dec. 31, 2017 | $ 13,841 | $ 13,447 | $ 2,424 | $ (2,083) | $ (7) | $ 13,781 | $ 60 | |||||||||
Total comprehensive income | ||||||||||||||||
Earnings | 1,278 | [1],[2] | 1,278 | [2] | 1,278 | 0 | ||||||||||
Other comprehensive (loss) income | ||||||||||||||||
Exchange gain on translation of foreign operations | 330 | [1] | 330 | 330 | ||||||||||||
Remeasurements of defined benefit liability, net of tax (Note 22) | (6) | [1] | (6) | (6) | ||||||||||||
Total comprehensive income attributable to shareholders | 1,602 | [1] | 1,278 | 324 | 1,602 | |||||||||||
Transactions with shareholders of the Company | ||||||||||||||||
Shares issued, net of issue costs | $ (1) | (1) | $ (1) | |||||||||||||
Debenture conversions (Note 9) | 140 | $ 140 | 140 | 140 | ||||||||||||
Share-based payment transactions (Note 16) | 75 | 75 | 75 | 75 | ||||||||||||
Dividends declared | (1,131) | (122) | $ (1,131) | $ (122) | $ (1,131) | (122) | ||||||||||
Total transactions with shareholders of the Company | (1,039) | 215 | (1) | (1,253) | 0 | (1,039) | ||||||||||
Equity, ending balance at Dec. 31, 2018 | [4] | 14,404 | [3] | 13,662 | 2,423 | (2,058) | 317 | 14,344 | 60 | |||||||
Impact of change in accounting policy | 22 | 22 | 22 | |||||||||||||
Total comprehensive income | ||||||||||||||||
Earnings | 1,492 | 1,492 | 1,492 | 0 | ||||||||||||
Other comprehensive (loss) income | ||||||||||||||||
Exchange gain on translation of foreign operations | (213) | (213) | (213) | |||||||||||||
Remeasurements of defined benefit liability, net of tax (Note 22) | (6) | (6) | (6) | |||||||||||||
Total comprehensive income attributable to shareholders | 1,273 | 1,492 | (219) | 1,273 | 0 | |||||||||||
Transactions with shareholders of the Company | ||||||||||||||||
Shares issued, net of issue costs | 1,710 | 533 | 1,710 | 533 | 1,710 | 533 | ||||||||||
Share-based payment transactions (Note 16) | 167 | 167 | 167 | |||||||||||||
Dividends declared | $ (1,213) | $ (126) | $ (1,213) | $ (126) | $ (1,213) | $ (126) | ||||||||||
Total transactions with shareholders of the Company | 1,071 | 1,877 | 533 | (1,339) | 0 | 1,071 | 0 | |||||||||
Equity, ending balance at Dec. 31, 2019 | $ 16,770 | $ 15,539 | $ 2,956 | $ (1,883) | $ 98 | $ 16,710 | $ 60 | |||||||||
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. | |||||||||||||||
[2] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. | |||||||||||||||
[3] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. | |||||||||||||||
[4] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | ||||
Operating activities | |||||
Earnings | $ 1,492 | $ 1,278 | [1],[2] | ||
Adjustments for: | |||||
Share of profit from equity accounted investees (Note 10) | (370) | (411) | [2] | ||
Distributions from equity accounted investees (Note 10) | 575 | 622 | [2] | ||
Depreciation and amortization (Note 8 & 9) | 511 | 417 | [2] | ||
Impairment of investment in equity accounted investees (Note 10) | 300 | 0 | [1],[2] | ||
Unrealized loss (gain) on commodity-related derivative financial instruments | 13 | (73) | [2] | ||
Net finance costs (Note 19) | 294 | 279 | [2] | ||
Net interest paid (Note 19) | (269) | (259) | [2] | ||
Income tax expense (Note 11) | 36 | 464 | [2] | ||
Taxes paid | (141) | (26) | [2] | ||
Share-based compensation expense (Note 23) | 66 | 63 | [2] | ||
Share-based compensation payment | (50) | (32) | [2] | ||
Loss on asset disposal | (1) | 19 | [2] | ||
Net change in contract liabilities | (30) | 11 | [2] | ||
Other | 0 | (13) | [2] | ||
Change in non-cash operating working capital | 106 | (83) | [2] | ||
Cash flow from operating activities | 2,532 | 2,256 | [2] | ||
Financing activities | |||||
Bank borrowings and issuance of debt | 2,153 | 1,366 | [2] | ||
Repayment of loans and borrowings | (1,866) | (1,998) | [2] | ||
Repayment of lease liability | (68) | ||||
Issuance of medium term notes (Note 14) | 2,318 | 700 | [2] | ||
Issue costs and financing fees | (14) | (8) | [2] | ||
Exercise of stock options | 151 | 61 | [2] | ||
Dividends paid | (1,323) | (1,247) | [2] | ||
Cash flow provided by (used in) financing activities | 1,351 | (1,126) | [2] | ||
Investing activities | |||||
Capital expenditures | (1,645) | (1,226) | [2] | ||
Contributions to equity accounted investees (Note 10) | (206) | (58) | [2] | ||
Acquisitions (Note 6) | (2,009) | 0 | [2] | ||
Interest paid during construction (Note 19) | (42) | (35) | [2] | ||
Recovery of assets or proceeds from sale | 7 | 5 | [2] | ||
Advances to related parties | (63) | (84) | [2] | ||
Changes in non-cash investing working capital and other | 48 | 87 | [2] | ||
Cash flow used in investing activities | (3,910) | (1,311) | [2] | ||
Change in cash and cash equivalents | (27) | (181) | [2] | ||
Effect of movement in exchange rates on cash held | (1) | 17 | [2] | ||
Cash and cash equivalents, beginning of period | [2] | 157 | [3] | 321 | |
Cash and cash equivalents, end of period | $ 129 | $ 157 | [2],[3] | ||
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. | ||||
[2] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. | ||||
[3] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
REPORTING ENTITY
REPORTING ENTITY | 12 Months Ended |
Dec. 31, 2019 | |
Management Commentary [Abstract] | |
REPORTING ENTITY | REPORTING ENTITY Pembina Pipeline Corporation ("Pembina" or the "Company") is a Calgary-based, leading transportation and midstream service provider serving North America's energy industry. The consolidated financial statements include the accounts of Pembina, its subsidiary companies, partnerships and any investments in associates and joint arrangements as at and for the year ended December 31, 2019 . Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. Pembina also owns gas gathering and processing facilities and an oil and natural gas liquids infrastructure, storage and logistics business; is growing an export terminals business; and is currently constructing a petrochemical facility to convert propane into polypropylene. Pembina's integrated assets and commercial operations along the majority of the hydrocarbon value chain allow it to offer a full spectrum of midstream and marketing services to the energy sector. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
BASIS OF PREPARATION | BASIS OF PREPARATION a. Basis of Measurement and Statement of Compliance The consolidated financial statements have been prepared on a historical cost basis with some exceptions, as detailed in the accounting policies set out below in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB"). Except for the changes described in Note 3, these accounting policies have been applied consistently for all periods presented in these consolidated financial statements. Certain insignificant comparative amounts have been reclassified to conform to the presentation adopted in the current year. These consolidated financial statements were authorized for issue by Pembina's Board of Directors on February 27, 2020 . b. Functional and Presentation Currency The consolidated financial statements are presented in Canadian dollars. All financial information presented in Canadian dollars has been disclosed in millions, except where noted. The assets and liabilities of subsidiaries, and investments in equity accounted investees, whose functional currencies are other than Canadian dollars are translated into Canadian dollars at the foreign exchange rate at the balance sheet date, while revenues and expenses of such subsidiaries are translated using average monthly foreign exchange rates, which approximate the foreign exchange rates on the dates of the transactions. Foreign exchange differences arising on translation of subsidiaries and investments in equity accounted investees with a functional currency other than the Canadian dollar are included in other comprehensive income. c. Use of Estimates and Judgments The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that are based on the facts and circumstances and estimates at the date of the consolidated financial statements and affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Judgments, estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The following judgment and estimation uncertainties are those management considers material to the consolidated financial statements: Judgments (i) Business Combinations Business combinations are accounted for using the acquisition method of accounting. The determination of fair value often requires management to make judgments about future possible events. The assumptions with respect to lease identification, classification and measurement, the fair value of property plant and equipment, intangible assets, decommissioning provisions and contract liabilities acquired, as well as the determination of deferred taxes, generally require the most judgment. (ii) Depreciation and Amortization Depreciation and amortization of property, plant and equipment and intangible assets are based on management's judgment of the most appropriate method to reflect the pattern of an asset's future economic benefit expected to be consumed by Pembina. Among other factors, these judgments are based on industry standards and historical experience. (iii) Impairment Assessment of impairment of non-financial assets is based on management’s judgment of whether or not there are sufficient internal or external factors that would indicate that an asset, investment, or cash generating unit ("CGU") is impaired. The determination of a CGU is based on management's judgment and is an assessment of the smallest group of assets that generate cash inflows independently of other assets. In addition, management applies judgment to assign goodwill acquired as part of a business combination to the CGU or group of CGUs that is expected to benefit from the synergies of the business combination for purposes of impairment testing. When an impairment test is performed, the carrying value of a CGU or group of CGUs is compared to its recoverable amount, defined as the greater of fair value less costs to sell and value in use. As such, the asset composition of a CGU or group of CGUs directly impacts both the carrying value and recoverability of the assets included therein. (iv) Assessment of Joint Control Over Joint Arrangements The determination of joint control requires judgment about the influence Pembina has over the financial and operating decisions of an arrangement and the extent of the benefits it obtains based on the facts and circumstances of the arrangement during the reporting period. Joint control exists when decisions about the relevant activities require the unanimous consent of the parties that control the arrangement collectively. Ownership percentage alone may not be a determinant of joint control. (v) Pattern of Revenue Recognition The pattern of revenue recognition is impacted by management's judgments as to the nature of Pembina's performance obligations, the amount of consideration allocated to performance obligations that are not sold on a stand-alone basis, the valuation of material rights and the timing of when those performance obligations have been satisfied. (vi) Leases Management applies judgment to determine whether a contract is, or contains, a lease from both a lessee and lessor perspective. This assessment is based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. Key judgments include whether a contract identifies an asset (or portion of an asset), whether the lessee obtains substantially all the economic benefits of the asset over the contract term and whether the lessee has the right to direct the asset's use. Judgment is also applied in determining the rate used to discount the lease payments. Estimates (i) Business Combinations Estimates of future cash flows, forecast prices, interest rates, discount rates, cost, market values and useful lives are made in determining the fair value of assets acquired and liabilities assumed. Changes in any of the assumptions or estimates used in determining the fair value of acquired assets and liabilities could impact the amounts assigned to assets, liabilities, intangible assets, goodwill and deferred taxes in the purchase price equation. Future earnings can be affected as a result of changes in future depreciation and amortization, asset or goodwill impairment. (ii) Provisions and Contingencies Management uses judgment in determining the likelihood of realization of contingent assets and liabilities to determine the outcome of contingencies. Provisions recognized are based on management's best estimate of the timing, scope and amount of expected future cash outflows to settle the obligation. Based on the long-term nature of the decommissioning provision, the most significant uncertainties in estimating the provision are the determination of whether a present obligation exists, the discount and inflation rates used, the costs that will be incurred and the timing of when these costs will occur. (iii) Deferred Taxes The calculation of the deferred tax asset or liability is based on assumptions about the timing of many taxable events and the enacted or substantively enacted rates anticipated to be applicable to income in the years in which temporary differences are expected to be realized or reversed. (iv) Depreciation and Amortization Estimated useful lives of property, plant and equipment and intangible assets are based on management's assumptions and estimates of the physical useful lives of the assets, the economic lives, which may be associated with the reserve lives and commodity type of the production area, in addition to the estimated residual value. (v) Impairment of Non-Financial Assets In determining the recoverable amount of a CGU, a group of CGUs or an individual asset, management uses its best estimates of future cash flows, and assesses discount rates to reflect management’s best estimate of a rate that reflects a current market assessment of the time value of money and the specific risks associated with the underlying assets and cash flows. (vi) Impairment of Financial Assets The measurement of financial assets carried at amortized cost includes management’s estimates regarding the expected credit losses that will be realized on these financial assets. (vii) Revenue from Contracts with Customers In estimating the contract value, management makes assessments as to whether variable consideration is constrained or not reasonably estimable, such that an amount or portion of an amount cannot be included in the estimate of the contract value. Management's estimates of the likelihood of a customer’s ability to use outstanding make-up rights may impact the timing of revenue recognition. In addition, in determining the amount of consideration to be allocated to performance obligations that are not sold on a stand-alone basis, management estimates the stand-alone selling price of each performance obligation under the contract, taking into consideration the location and volume of goods or services being provided, the market environment, and customer specific considerations. (viii) Fair Value of Financial Instruments For Level 2 valued financial instruments, management makes assumptions and estimates value based on observable inputs such as quoted forward prices, time value and volatility factors. For Level 3 valued financial instruments, management uses estimates of financial forecasts, expected cash flows and risk adjusted discount rates to measure fair value. (ix) Employee Benefit Obligations An actuarial valuation is prepared to measure Pembina's net employee benefit obligations using management’s best estimates with respect to longevity, discount and inflation rates, compensation increases, market returns on plan assets, retirement and termination rates. (x) Leases In measuring its lease liabilities, management makes assessments of the stand-alone selling prices of each lease and non-lease component for the purposes of allocating consideration to each component. Management applies its best estimate with respect to the likelihood of renewal, extension and termination option exercise in determining the lease term. |
CHANGES IN ACCOUNTING POLICIES
CHANGES IN ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
CHANGES IN ACCOUNTING POLICIES | CHANGES IN ACCOUNTING POLICIES Except for the changes described below, accounting policies as disclosed in Note 4 of the Consolidated Financial Statements have been applied to all periods consistently. IFRS 16 Leases ("IFRS 16") Pembina adopted IFRS 16 effective January 1, 2019. IFRS 16 introduced a new lease definition that increases the focus on control of the underlying asset. In addition, IFRS 16 introduced a single, on balance sheet accounting model for lessees that has resulted in Pembina recording right-of-use assets representing its right to use the underlying assets and lease liabilities representing its obligation to make lease payments. Lessor accounting has remained unchanged, except for changes in the classification of subleases. IFRS 16 has been applied using the modified retrospective approach, under which the cumulative effect of initial application was recognized in equity at January 1, 2019 as further disclosed below. Accordingly, the comparative financial information has not been restated and continues to be reported under International Accounting Standard ("IAS") 17 Leases and International Financial Reporting Interpretations Committee Interpretation 4 Determining whether an arrangement contains a lease ("IFRIC 4"). The details of Pembina's accounting policies under IAS 17 and IFRIC 4, for the comparative period, are disclosed separately below. On transition to IFRS 16, Pembina elected to apply the practical expedient to grandfather the assessment of whether a contract entered into before the date of initial application was, or contained, a lease under IFRIC 4, rather than reassess based on the new definition of a lease under IFRS 16. Contracts previously identified as leases were recognized and measured in accordance with IFRS 16. a. Accounting Policies A pplicable from January 1, 2019 The details of significant accounting policies under IFRS 16 and the nature of the changes to previous accounting policies under IAS 17 are outlined below. i. Leases For all contracts entered into or amended on or after January 1, 2019, Pembina applies the definition of a lease under IFRS 16 to determine if a contract is, or contains, a lease. A specific asset is the subject of a lease if the contract conveys the right to control the use of that identified asset for a period of time in exchange for consideration. This determination is made at inception of a contract, and is reassessed when the terms and conditions of the contract are amended. At inception or on reassessment of a contract that contains a lease component, Pembina allocates contract consideration to the lease and non-lease components on the basis of their relative stand-alone prices. The consideration allocated to the lease components is recognized in accordance with the policies for lessee and lessor leases, as described below. The consideration allocated to non-lease components is recognized in accordance with its nature. ii. Lessee Leased assets are recognized as right-of-use assets, with corresponding lease liabilities recognized on the statement of financial position at the lease commencement date. Right-of-use assets include terminals, rail, buildings, storage tanks and land and other assets. Right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset and restore the site of an underlying asset to the condition required by the terms of the lease, less any lease incentives received. Right-of-use assets recognized as a result of business combination are initially measured in the same manner, plus an adjustment to reflect favourable or unfavourable lease terms compared to market terms. Right-of-use assets are subsequently measured at cost less any accumulated depreciation and accumulated impairment losses, adjusted for remeasurements of the lease liability. The right-of-use asset is depreciated over the lesser of the asset’s useful life and the lease term on a straight-line basis. The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease if readily determinable, or at a rate Pembina would be required to pay to borrow over a similar term, with a similar security to obtain an asset of a similar value to the right-of-use asset. Lease payments in an optional renewal period are included in the lease liability if Pembina is reasonably certain to exercise such option. The lease liability is subsequently increased by interest expense on the lease liability and decreased by lease payments made. Interest expense is recorded in earnings at an amount that represents a constant periodic rate of interest on the remaining balance of the lease liability. The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimated guaranteed residual value to be paid, or a change in the assessment of whether a purchase option, extension option or termination option is reasonably certain to be exercised. A corresponding adjustment is made to the right of use asset when a liability is remeasured, or the adjustment is recorded in earnings if the right of use asset has been reduced to zero. Pembina has elected to apply the recognition exemptions for short-term and low value leases. Pembina recognizes lease payments associated with these leases as an expense on a straight-line basis over the lease term. iii. Lessor Lessor leases are classified as either operating leases or finance leases according to the substance of the contract. Leases transferring substantially all of the risks incidental to asset ownership are classified as finance leases, while all other leases are classified as operating leases. Subleases are classified as either operating or finance leases in reference to the right-of-use asset arising from the head lease. Under IAS 17, Pembina also classified lessor subleases as operating or finance leases based on an overall assessment of whether the lease transferred substantially all of the risks and rewards incidental to ownership of the underlying asset, considering certain indicators such as whether the lease was for the major part of the economic life of the asset. Assets under finance lease are recognized in finance lease receivables at the value of the net investment in the lease. The net investment in the lease is measured at the net present value of the future amounts receivable, discounted using the interest rate implicit in the lease. Finance income is recognized over the lease term in a pattern reflecting a consistent rate of return on the finance lease receivable. Lease payments from operating leases are recognized as income on either a straight-line basis or a systematic basis representative of the pattern in which benefit from the use of the underlying asset is received. b. Accounting Policies Applicable Prior to January 1, 2019 The details of significant accounting policies under IAS 17 and IFRIC 4, under which comparative balances continue to be reported, are outlined below. At inception of an arrangement, Pembina determines whether such an arrangement is or contains a lease. A specific asset is the subject of a lease if fulfilment of the arrangement is dependent on the use of that specified asset. An arrangement conveys the right to use the asset if the arrangement conveys to a lessee the right to control the use of the underlying asset. At inception or upon reassessment of the arrangement, Pembina separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. Leases which Pembina assumes substantially all the risks and rewards of ownership are classified as finance leases. The leased asset is initially recognized at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Minimum lease payments made under finance leases are apportioned between the finance cost and the reduction of the outstanding liability. The finance cost is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Other leases are operating leases and are not recognized in Pembina's consolidated statement of financial position. Payments made under lessee operating leases are recognized in earnings on a straight-line basis over the term of the lease. Lease incentives received are deferred and recognized over the term of the lease. Payments received under lessor operating leases are recognized in earnings in accordance with the benefit received by the customer. c. Transition i. Lessee At transition, lease liabilities for contracts previously identified as operating leases under IAS 17 were measured at the present value of the remaining lease payments, discounted at Pembina's incremental borrowing rate as at January 1, 2019. For all leases, right-of-use assets were measured at an amount equal to the lease liability. Pembina applied the following practical expedients on transition: • Pembina applied a single discount rate to a portfolio of leases with similar characteristics rather than multiple discount rates to match the term of each lease; • Pembina has relied on onerous lease contract assessments previously performed under IAS 37 Provisions, Contingent Liabilities and Contingent Assets as an alternative to an impairment review on right-of-use assets, resulting in an adjustment of the right-of-use asset balance by the amount of the onerous lease contract provision outstanding immediately before the date of initial application; and • Pembina elected not to recognize right-of-use assets and corresponding lease liabilities for leases with terms of less than 12 months remaining. There has been no change to the accounting for contracts previously identified as finance leases under IAS 17. The carrying amount of the right-of-use asset and lease liability on transition were determined to be equal to the carrying amount of the lease asset and lease liability under IAS 17. ii. Lessor Sub-lease contracts previously classified as operating leases are recognized as finance leases under IFRS 16. d. Financial Statement Impacts On transition to IFRS 16, Pembina recognized significant right-of-use assets and lease liabilities related to rail, buildings and land. Further disclosures related to leases are provided in Note 13 to the Consolidated Financial Statements. i. Consolidated Statement of Financial Position The impacts of adoption of IFRS 16 as at January 1, 2019 are as follows : As at December 31, 2018 Adjustments Opening Value January 1, 2019 ($ millions) Assets Current assets Trade receivables and other (1) 604 1 605 Non-current assets Property, plant and equipment (2) 14,730 (18 ) 14,712 Right-of-use assets (3) — 427 427 Advances to related parties and other assets (1)(4) 144 33 177 Liabilities and Equity Current liabilities Trade payables and other (4) 870 (7 ) 863 Loans and borrowings (5) 480 (8 ) 472 Lease liabilities — 64 64 Non-current liabilities Loans and borrowings (5) 7,057 (11 ) 7,046 Lease liabilities — 416 416 Deferred tax liabilities 2,774 8 2,782 Other liabilities (4) 239 (41 ) 198 Equity Attributable to shareholders 14,344 22 14,366 (1) Includes lessor finance lease receivables. (2) Finance lease assets previously recorded in property, plant and equipment were reclassified to right-of-use assets. (3) Right-of-use assets are recorded at a value equal to the associated lease liability of $480 million , less $33 million for sublease arrangements, less onerous lease liability balance at December 31, 2018 of $20 million . (4) Operating lease payments were previously recognized on a straight-line basis, with the difference between cash payments and expense (income) recorded to a deferred lease asset or deferred lease liability. These deferrals were derecognized on adoption of IFRS 16. In addition, $20 million of onerous lease liabilities were offset against right-of-use assets. (5) Finance leases previously recorded in loans and borrowings were reclassified to lease liabilities. ii. Reconciliation of Lease Liability ($ millions) Lease commitments, disclosed at December 31, 2018 796 Leases not yet commenced (33 ) Non-lease components (217 ) Renewal options reasonably certain to be exercised 53 Total undiscounted lease payments 599 Discounting impact (1) (119 ) Lease liabilities recognized as at January 1, 2019 480 (1) Pembina discounted lease payments using the incremental credit-risk adjusted borrowing rate applicable to the contract. The weighted-average rate applied on transition for all lease liabilities was 4.01 percent . |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES The accounting policies as set out below have been applied consistently to all periods presented in these consolidated financial statements. a. Basis of Consolidation i) Business Combinations Pembina measures goodwill as the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree, less the fair value of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date. When the excess is negative, a bargain purchase gain is recognized immediately in earnings. Pembina elects on a transaction-by-transaction basis whether to measure non-controlling interest at its fair value, or at its proportionate share of the recognized amount of the identifiable net assets, at the acquisition date. Non-controlling interests represent equity interests in subsidiaries owned by outside parties. The share of net assets of subsidiaries attributable to non-controlling interests is presented as a separate component of equity. Their share of net income and other comprehensive income is also recognized in this separate component of equity. Changes in Pembina's ownership interest in subsidiaries that do not result in a loss of control are accounted for as equity transactions. Adjustments to non-controlling interests are based on a proportionate amount of the net assets of the subsidiary. No adjustments are made to goodwill and no gain or loss is recognized in earnings. Transaction costs, other than those associated with the issue of debt or equity securities, that Pembina incurs in connection with a business combination are expensed as incurred. ii) Subsidiaries Subsidiaries are entities, including unincorporated entities such as partnerships, controlled by Pembina. The financial results of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries are aligned with the policies adopted by Pembina. iii) Joint Arrangements Joint arrangements represent activities where Pembina has joint control established by a contractual agreement. Joint control requires unanimous consent for the relevant financial and operational decisions. A joint arrangement is either a joint operation, whereby the parties have rights to the assets and obligations for the liabilities, or a joint venture, whereby the parties have rights to the net assets. For a joint operation, the consolidated financial statements include Pembina's proportionate share of the assets, liabilities, revenues, expenses and cash flows of the arrangement with items of a similar nature on a line-by-line basis, from the date that joint control commences until the date that joint control ceases. Joint ventures are accounted for using the equity method of accounting and are initially recognized at cost, or fair value if acquired as part of a business combination. Joint ventures are adjusted thereafter for the post-acquisition change in the Company's share of the equity accounted investment's net assets. Pembina's consolidated financial statements include its share of the equity accounted investment's profit or loss and other comprehensive income, or income equal to preferred distributions for certain preferred share interests in equity accounted investees, until the date that joint control ceases. When Pembina's share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest, including any long-term investments, is reduced to nil, and the recognition of further losses is discontinued except to the extent that Pembina has an obligation or has made payments on behalf of the investee. Distributions from investments in equity accounted investees are recognized when received. Acquisition of an incremental ownership in a joint arrangement where Pembina maintains joint control is recorded at cost or fair value if acquired as part of a business combination. Where Pembina has a partial disposal, including a deemed disposal, of a joint arrangement and maintains joint control, the resulting gains or losses are recorded in earnings at the time of disposal. iv) Transactions Eliminated on Consolidation Balances and transactions, and any revenue and expenses arising from intersegment transactions, are eliminated in preparing the consolidated financial statements. Gains arising from transactions with investments in equity accounted investees are eliminated against the investment to the extent of Pembina's interest in the investee. Losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. v) Foreign Currency Transactions in foreign currencies are translated to Pembina's functional currency at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to Pembina's functional currency at the exchange rate at that date, with exchange differences recognized in earnings. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Gains and losses arising from translation of foreign subsidiaries or investments in equity accounted investees with a functional currency other than Pembina's Canadian dollar reporting currency are reflected in other comprehensive income. Asset and liability accounts are translated at the period-end exchange rates while revenues, expenses, gains and losses are translated at the exchange rates in effect at the time of the transaction. b. Cash and Cash Equivalents Cash and cash equivalents comprise cash balances, call deposits and short-term investments with original maturities of ninety days or less, and are used by Pembina in the management of its short-term commitments. c. Inventories Inventories are measured at the lower of cost and net realizable value and consist primarily of crude oil, NGL and spare parts. The cost of inventories is determined using the weighted average costing method and includes direct purchase costs and when applicable, costs of production, extraction, fractionation, and transportation. Net realizable value is the estimated selling price in the ordinary course of business less the estimated selling costs. All changes in the value of inventories are reflected in earnings. d. Financial Instruments Financial assets and liabilities are offset and the net amount presented in the consolidated statement of financial position when, and only when, Pembina has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. i) Non-Derivative Financial Assets Pembina initially recognizes loans, receivables, advances to related parties and deposits on the date that they are originated. All other financial assets are recognized on the trade date at which Pembina becomes a party to the contractual provisions of the instrument. Pembina derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by Pembina is recognized as a separate asset or liability. On derecognition, the difference between the carrying amount of the financial asset and the consideration received is recognized in earnings. Pembina classifies non-derivative financial assets into the following categories: Financial Assets at Amortized Cost A financial asset is classified in this category if the asset is held within a business model whose objective is to collect contractual cash flows on specified dates that are solely payments of principal and interest. At initial recognition, financial assets at amortized cost are recognized at fair value plus directly attributable transaction costs. Subsequent to initial recognition, these financial assets are recorded at amortized cost using the effective interest method less any impairment loss allowances. Financial Assets at Fair Value Through Other Comprehensive Income A financial asset is classified in this category if the asset is held within a business model whose objective is met by both collecting contractual cash flows and selling financial assets. Pembina did not have any financial assets classified as fair value through other comprehensive income during the years covered in these financial statements. Financial Assets at Fair Value Through Earnings A financial asset is classified in this category if it is not classified as a financial asset at amortized cost or a financial asset at fair value through other comprehensive income, or it is an equity instrument designated as such on initial recognition. At initial recognition, and subsequently, these financial assets are recognized at fair value. ii) Non-Derivative Financial Liabilities Pembina initially recognizes financial liabilities on the trade date at which Pembina becomes a party to the contractual provisions of the instrument. Non-derivative financial liabilities are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortized cost using the effective interest method. Pembina derecognizes a financial liability when its contractual obligations are discharged, cancelled or expire. On derecognition, the difference between the carrying value of the liability and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in earnings. Pembina records a modification or exchange of an existing liability as a derecognition of the financial liability if the terms are substantially different, resulting in a difference of more than 10 percent when comparing the present value of the remaining cash flows of the existing liability to the present value of the discounted cash flows under the new terms using the original effective interest rate. If a modification to an existing liability causes a revision to the estimated payments of the liability but is not treated as a derecognition, Pembina adjusts the gross carrying amount of the liability to the present value of the estimated contractual cash flows using the instrument’s original effective interest rate, with the difference recorded in earnings. Pembina's non-derivative financial liabilities are comprised of the following: bank overdrafts, trade payables and accrued liabilities, taxes payable, dividends payable, loans and borrowings including finance lease obligations and other liabilities. Bank overdrafts that are repayable on demand and form an integral part of Pembina's cash management are included as a component of cash and cash equivalents for the purpose of the consolidated statements of cash flows. iii) Common Share Capital Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects. iv) Preferred Share Capital Preferred shares are classified as equity because they bear discretionary dividends and do not contain any obligations to deliver cash or other financial assets. Discretionary dividends are recognized as equity distributions on approval by Pembina's Board of Directors. Incremental costs directly attributable to the issue of preferred shares are recognized as a deduction from equity, net of any tax effects. v) Derivative Financial Instruments Pembina holds derivative financial instruments to manage its interest rate, commodity, power costs and foreign exchange risk exposures. Embedded derivatives are separated from the host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative meet the definition of a derivative, and the combined instrument is not measured at fair value through earnings. Derivatives are recognized initially at fair value with attributable transaction costs recognized in earnings as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes in non-commodity-related derivatives are recognized immediately in earnings as part of net finance costs and changes in commodity-related derivatives are recognized immediately in earnings. e. Property, Plant and Equipment i) Recognition and Measurement Items of property, plant and equipment are measured initially at cost, unless they are acquired as part of a business combination in which case they are initially measured at fair value. Thereafter, property, plant and equipment are recorded net of accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, estimated decommissioning provisions and borrowing costs on qualifying assets. Cost may also include any gain or loss realized on foreign currency transactions directly attributable to the purchase or construction of property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate components of property, plant and equipment. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and is recognized in earnings. ii) Subsequent Costs The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to Pembina, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized and recorded as depreciation expense. The cost of maintenance and repair expenses of the property, plant and equipment are recognized in earnings as incurred. iii) Depreciation Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of the asset, that component is depreciated separately. Land and linefill are not depreciated. Depreciation is recognized in earnings over an asset's useful life on a straight line or declining balance basis, which most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. An asset's useful life is determined as the lower of its physical life and economic life. Depreciation commences once an asset is available for use. Depreciation methods, useful lives and residual values are reviewed annually and adjusted if appropriate. f. Intangible Assets i) Goodwill Goodwill that arises upon acquisitions is included in intangible assets and goodwill. See Note 4(a)(i) for the policy on measurement of goodwill at initial recognition. Subsequent Measurement Goodwill is measured at cost less accumulated impairment losses. In respect of investments in equity accounted investees, goodwill is included in the carrying amount of the investment, and an impairment loss on such an investment is allocated to the investment and not to any asset, including goodwill, that forms the carrying amount of the investment in equity accounted investee. ii) Other Intangible Assets Other intangible assets acquired individually by Pembina are initially recognized and measured at cost, unless they are acquired as part of a business combination in which case they are initially measured at fair value. Thereafter, intangible assets with finite useful lives are recorded net of accumulated amortization and accumulated impairment losses. iii) Subsequent Expenditures Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures are recognized in earnings as incurred. iv) Amortization Amortization is based on the cost of an asset less its residual value. Amortization is recognized in earnings over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. Amortization methods, useful lives and residual values are reviewed annually and adjusted if appropriate. g. Leases Accounting policies related to leases are disclosed in Note 3 Changes in Accounting Policies. h. Impairment i) Non-Derivative Financial Assets Impairment of financial assets carried at amortized cost is assessed using the lifetime expected credit loss of the financial asset at initial recognition and throughout the life of the financial asset, except where credit risk has not increased significantly since initial recognition, in which case impairment is assessed at the 12 month expected credit loss of the financial asset at the reporting date. In determining the impairment loss allowance for trade receivables, Pembina uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management's judgment as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. Impairment losses are recognized in earnings and reflected as a reduction in the related financial asset. ii) Non-Financial Assets The carrying amounts of Pembina's non-financial assets, other than: inventory, assets arising from employee benefits and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. For goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, the recoverable amount is estimated annually in connection with the annual goodwill impairment test. An impairment loss is recognized if the carrying amount of an asset or its related CGU exceeds its estimated recoverable amount. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing the recoverable amount, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset, CGU or group of CGUs. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into CGUs, the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets. CGUs may incorporate integrated assets from multiple operating segments. For the purpose of goodwill impairment testing, CGUs are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal purposes. Goodwill acquired in a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination. Pembina's corporate assets do not generate separate cash inflows and are utilized by more than one CGU. Corporate assets are allocated to CGUs on a reasonable and consistent basis and tested for impairment as part of the testing of the CGU to which the corporate asset is allocated. If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset has been allocated. Impairment losses are recognized in earnings. Impairment losses recognized in respect of a CGU (group of CGUs) are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Goodwill that forms part of the carrying amount of an investment in an equity accounted investee is not recognized separately, and therefore is not tested for impairment separately. Instead, the entire amount of the investment is tested for impairment as a single asset when there is objective evidence that the equity accounted investee may be impaired, unless the equity accounted investee does not generate cash flows that are largely independent of those from other assets of the entity in which case it is combined in a CGU with the related assets. i. Employee Benefits i) Defined Contribution Plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in earnings in the periods during which services are rendered by employees. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available. Contributions to a defined contribution plan due more than 12 months after the end of the period in which the employees render the service are discounted to their present value. ii) Defined Benefit Pension Plans A defined benefit pension plan is a post-employment benefit plan other than a defined contribution plan. Pembina's net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods, discounted to determine its present value, less the fair value of any plan assets. The discount rate used to determine the present value is established by referencing market yields on high-quality corporate bonds on the measurement date with cash flows that match the timing and amount of expected benefits. The calculation is performed, at a minimum, every three years by a qualified actuary using the actuarial cost method. When the calculation results in a benefit to Pembina, the recognized asset is limited to the present value of economic benefits available in the form of future expenses payable from the plan, any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any minimum funding requirements that apply to any plan in Pembina. An economic benefit is available to Pembina if it is realizable during the life of the plan or on settlement of the plan liabilities. When the benefits of a plan are improved, the portion of the increased benefit relating to past service by employees is recognized in earnings immediately. Pembina recognizes all actuarial gains and losses arising from defined benefit plans in other comprehensive income and expenses related to defined benefit plans in earnings. Pembina recognizes gains or losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. The gain or loss on curtailment comprises any resulting change in the fair value of plan assets, change in the present value of defined benefit obligation and any related actuarial gains or losses and past service cost that had not previously been recognized. iii) Short-Term Employee Benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if Pembina has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. iv) Share-Based Payment Transactions For equity settled share-based payment plans, the fair value of the share-based payment at grant date is recognized as an expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service conditions at the vesting date. For cash settled share-based payment plans, the fair value of the amount payable to employees is recognized as an expense with a corresponding increase in liabilities, over the period that the employees unconditionally become entitled to payment. The liability is remeasured at each reporting date and at settlement date. Any changes in the fair value of the liability are recognized as an expense in earnings. j. Provisions A provision is recognized if, as a result of a past event, Pembina has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Provisions are remeasured at each reporting date based on the best estimate of the settlement amount. The unwinding of the discount rate is recognized as accretion in finance costs. i) Decommissioning Provision Pembina's activities give rise to certain dismantling, decommissioning, environmental reclamation and remediation obligations at the end of an asset's economic life. A provision is made for the estimated cost of site restoration and capitalized in the relevant asset category. Decommissioning obligations are measured at the present value, based on a risk-free rate, of management's best estimate of what is reasonably expected to be incurred to settle the obligation at the end of an asset's economic life. Subsequent to the initial measurement, the obligation is adjusted at the end of each period to reflect the passage of time, changes in the risk-free rate and changes in the estimated future cash flows underlying the obligation. The increase in the provision due to the passage of time is recognized as accretion in finance costs whereas increases or decreases due to changes in the estimated future cash flows or risk-free rate are added to or deducted from the cost of the related asset. Decommissioning obligations assumed in a business combination are initially recorded at fair value and remeasured using a risk-free rate subsequent to acquisition. This remeasurement is added to or deducted from the cost of the related asset. k. Revenue i) Take-or-Pay Pembina provides transportation, gas processing, fractionation, terminalling, and storage services under take-or-pay contracts. In a take-or-pay contract, Pembina is entitled to a minimum fee for the firm service promised to a customer over the contract period, regardless of actual volumes transported, processed, terminalled, or stored. This minimum fee can be represented as a set fee for an annual minimum volume, or an annual minimum revenue requirement. In addition, these contracts may include variable consideration for operating costs that are flow through to the customer. Pembina satisfies its performance obligations and recognizes revenue for services under take-or-pay commitments when volumes are transported, processed, terminalled, or stored. Make-up rights may arise when a customer does not fulfill their minimum volume commitment in a certain period, but is allowed to use the delivery of future volumes to meet this commitment. These make-up rights are subject to expiry and have varying conditions associated with them. When contract terms allow a customer to exercise their make-up rights using firm volume commitments, revenue is not recognized until these make-up rights are used, expire, or management determines that it is remote that they will be utilized. If Pembina bills a customer for unused service in an earlier period and the customer utilizes available make-up rights, Pembina records a refund liability for the amount to be returned to the customer through an annual adjustment process. For contracts where no make-up rights exist, revenue is recognized to take-or-pay levels once Pembina has an enforceable right to payment for the take-or-pay volumes. Make-up rights generally expire within a contract year, and the majority of the related contract years follow the calendar year. When customers are transporting, processing, terminalling, or storing volumes below their take-or-pay commitments early in a contract year, and the customer has the right to exercise make up rights against future firm volume commitments, there will be a change to the timing of revenue recognition. Where Pembina has a right to invoice to take-or-pay levels throughout the contract year, revenue is deferred and a contract liability is recorded for the volumes invoiced that were not utilized by the customer. Once the customer has used its make-up rights or it is determined to be remote that a customer will use them, the previously deferred revenue is recognized. In these instances, there will be a deferral of revenue in early quarters of the year, with subsequent recognition occurring in later quarters although there is no impact on cash flows. For certain arrangements where the customer does not have make-up rights, where the make-up rights have been determined to be insignificant, and for cost of service agreements, revenue is recognized using the practical expedient to recognize revenue in an amount equal to Pembina's right to invoice. For these arrangements, the consideration Pembina is entitled to invoice in each period is representative of the value provided to the customer. When up-front payments or non-cash consideration is received in exchange for future services to be performed, revenue is deferred as a contract liability and recognized over the period the performance obligation is expected to be satisfied. Non-cash consideration is measured at the fair value of the non-cash consideration received. ii) Fee-for-Service Fee-for-service revenue includes firm contracted revenue that is not subject to take-or-pay commitments and interruptible revenue. Pembina satisfies its performance obligations for transportation, gas processing, fractionation, terminalling, and storage as volumes of product are transported, processed, or stored. Revenue is based on a contracted fee and consideration is variable with respect to volumes. Payment is due in the month following Pembina's provision of service. iii) Product Sales Pembina satisfies its performance obligation on product sales at the time legal title to the product is transferred to the customer. Certain commodity buy/sell arrangements where control of the product has not transferred to Pembina are recognized on a net basis in revenue. For product sales, revenue is recognized using the practical expedient to recognize revenue in an amount equal to Pembina's right to invoice as the consideration Pembina is entitled to invoice in each period is representative of the value provided to the customer. l. Finance Income and Finance Costs Finance income comprises interest income on funds deposited and invested, finance lease receivables, gains on non-commodity-related derivatives me |
DETERMINATION OF FAIR VALUES
DETERMINATION OF FAIR VALUES | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurement [Abstract] | |
DETERMINATION OF FAIR VALUES | DETERMINATION OF FAIR VALUES A number of Pembina's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. i) Property, Plant and Equipment The fair value of property, plant and equipment recognized as a result of a business combination or transferred from a customer is based on market values when available, income approach and depreciated replacement cost when appropriate. Depreciated replacement cost reflects adjustments for physical deterioration as well as functional and economic obsolescence. ii) Intangible Assets The fair value of intangible assets acquired in a business combination is determined by an active market value or using the multi-period excess earnings method, whereby the subject asset is valued after deducting a fair return on all other assets that are part of creating the related cash flows. The fair value of other intangible assets is based on the discounted cash flows expected to be derived from the use and eventual sale of the assets. iii) Derivatives Fair value of derivatives are estimated by reference to independent monthly forward prices, interest rate yield curves, and currency rates at the reporting dates. Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the company, entity and counterparty when appropriate. iv) Non-Derivative Financial Assets and Liabilities The fair value of non-derivative financial assets and liabilities is determined on initial recognition, on a recurring basis, or for disclosure purposes. Fair values of financial assets at amortized cost are calculated based on the present value of estimated future principal and interest cash flows, discounted at the market rate of interest at the reporting date. Fair values of financial assets held at fair value are calculated using a probability-weighted income approach based on current market expectations for future cash flows. For other financial liabilities where market rates are not readily available, a risk adjusted market rate is used which incorporates the nature of the instrument as well as the risk associated with the underlying cash payments. v) Decommissioning Provision The fair value of decommissioning obligations assumed as part of a business combination are measured as the present value of management's best estimate of what is reasonably expected to be incurred to settle the obligation at the end of an asset's economic life. The obligation is discounted using a risk adjusted rate corresponding to the underlying assets to which the obligation relates. vi) Share-Based Compensation Transactions The fair value of employee share options is measured using the Black-Scholes formula on grant date. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility adjusted for changes expected due to publicly available information), weighted average expected life of the instruments (based on historical experience and general option holder behaviour), expected dividends, expected forfeitures and the risk-free interest rate (based on government bonds). Service and non-market performance conditions attached to the transactions are not taken into account in determining fair value. The fair value of the long-term share unit award incentive plan and associated distribution units are measured based on the volume-weighted average price for 20 days ending at the reporting date of Pembina's shares. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations1 [Abstract] | |
ACQUISITION | ACQUISITION On December 16, 2019 , Pembina acquired all the issued and outstanding shares of Kinder Morgan Canada Limited ("Kinder Morgan Canada") by way of a plan of arrangement and the U.S. portion of the Cochin Pipeline system (collectively the "Kinder Acquisition") for total consideration of $4.3 billion comprised of $2.0 billion in cash and $2.3 billion of share consideration including, 35.7 million common shares of Pembina at $47.87 per share, 12 million series 23 preferred shares at $24.43 per share and 10 million series 25 preferred shares at $24.33 per share. The common shares were valued using Pembina's market price on the Toronto Stock Exchange immediately prior to the acquisition closing on December 16, 2019 and the preferred shares were valued using Kinder Morgan Canada's equivalent preferred share value on the same date. In accordance with the plan of arrangement, Kinder Morgan Canada was amalgamated with Pembina and the outstanding Kinder Morgan Canada preferred shares were exchanged for Pembina preferred shares with the same terms and conditions. Kinder Morgan Canada owns a significant crude oil storage and terminalling business located in the core of the Edmonton area crude oil complex, the Canadian portion of the Cochin Pipeline system and a 125 -acre bulk marine terminal facility in the Port of Vancouver, Canada. Following the acquisition Pembina owns the entire Cochin Pipeline, which is a cross-border pipeline system that connects Pembina's Channahon, Bakken and Edmonton area assets and is connected to markets in Mont Belvieu, Conway and Edmonton. The acquisition was accounted for as a business combination using the acquisition method where the acquired tangible and intangible assets and assumed liabilities were recorded at their estimated fair values at the date of acquisition, with the exception of right-of-use assets, deferred tax liabilities, and lease liabilities, which are measured in accordance with Pembina's accounting policies. The purchase price equation, subject to finalization, is based on assessed fair values and is as follows: ($ millions) December 16, 2019 Purchase Price Consideration Common shares 1,710 Cash (net of cash acquired) 2,009 Preferred shares 536 4,255 Current assets 68 Property, plant and equipment 2,660 Intangible assets 1,254 Right-of-use assets 348 Goodwill 809 Other assets 9 Current liabilities (124 ) Deferred tax liabilities (281 ) Decommissioning provision (74 ) Lease liability (348 ) Other liabilities (66 ) 4,255 Pembina engaged an independent valuator to assist with determining the fair value of certain tangible and intangible assets within the purchase price equation. Tangible assets of $2.7 billion were valued primarily using a cost approach. Intangible assets of $1.3 billion are entirely attributable to the acquisition date fair value of customer relationships, which was determined using a discounted cash flow model based on significant assumptions including forecasted revenue growth rates, contract renewal rates, and the discount rate. The primary drivers that generated goodwill were synergies and business opportunities from the integration of Pembina and Kinder Morgan Canada. A portion of goodwill in the amount of $180 million is expected to be deductible from taxable income for tax purposes. Pembina recognized $12 million in acquisition-related expenses in 2019. All acquisition-related expenses were expensed as incurred and included in other expenses in the Consolidated Statement of Earnings and Comprehensive Income. Revenue generated by the acquisition for the period from the acquisition date of December 16, 2019 to December 31, 2019 was $27 million . Net earnings for the same period were $11 million . If the acquisition had occurred on January 1, 2019, management estimates that consolidated revenue would have increased an additional $579 million and consolidated net earnings for the year would have increased an additional $65 million . In determining these amounts, management assumed that the fair value adjustments that arose on the date of acquisition would have been the same if the acquisition had occurred on January 1, 2019. Given the acquisition closed on December 16, 2019, the purchase price allocation is not final as Pembina is continuing to obtain and verify information required to determine the fair value of certain assets and liabilities and the amount of deferred income taxes arising on their recognition, including: identification and classification of leases, contingencies, decommissioning provisions and other potential provisions. |
TRADE RECEIVABLES AND OTHER
TRADE RECEIVABLES AND OTHER | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE RECEIVABLES AND OTHER | TRADE RECEIVABLES AND OTHER As at December 31 ($ millions) 2019 2018 Trade receivables from customers 575 501 Other receivables 92 88 Prepayments 25 16 Impairment loss allowance — (1 ) Total trade receivables and other 692 604 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT ($ millions) Land and Land Rights Pipelines Facilities and Equipment Cavern Storage and Other Assets Under Construction Total Cost Balance at December 31, 2017 329 6,650 6,715 1,223 659 15,576 Additions and transfers 12 531 469 231 291 1,534 Change in decommissioning provision — (10 ) 5 19 — 14 Disposals and other (1 ) (7 ) (30 ) 5 (11 ) (44 ) Balance at December 31, 2018 340 7,164 7,159 1,478 939 17,080 Reclassification on adoption of IFRS 16 (Note 3) — — — (44 ) — (44 ) Additions and transfers 32 215 691 203 534 1,675 Acquisition (Note 6) 86 1,434 798 314 28 2,660 Change in decommissioning provision — 10 143 5 — 158 Foreign exchange adjustments (2 ) (17 ) (4 ) — (11 ) (34 ) Disposals and other — (3 ) (31 ) (12 ) 3 (43 ) Balance at December 31, 2019 456 8,803 8,756 1,944 1,493 21,452 Depreciation Balance at December 31, 2017 9 1,096 721 204 — 2,030 Depreciation 3 142 164 55 — 364 Disposals and other — (17 ) (18 ) (9 ) — (44 ) Balance at December 31, 2018 12 1,221 867 250 — 2,350 Reclassification on adoption of IFRS 16 (Note 3) — — — (26 ) — (26 ) Depreciation 4 155 174 59 — 392 Disposals and other — (13 ) (26 ) — — (39 ) Balance at December 31, 2019 16 1,363 1,015 283 — 2,677 Carrying amounts Balance at December 31, 2018 328 5,943 6,292 1,228 939 14,730 Balance at December 31, 2019 440 7,440 7,741 1,661 1,493 18,775 Property, Plant and Equipment Under Construction Costs of assets under construction at December 31, 2019 totaled $1.5 billion ( 2018 : $939 million ) including capitalized borrowing costs. For the year ended December 31, 2019 , included in additions and transfers are capitalized borrowing costs related to the construction of new pipelines or facilities amounting to $42 million ( 2018 : $35 million ), with capitalization rates ranging from 3.91 percent to 4.05 percent ( 2018 : 3.86 percent to 4.01 percent). Depreciation Pipeline assets are depreciated using the straight line method over three to 75 years with the majority of assets depreciated over 40 years. Facilities and equipment are depreciated using the straight line method over three to 75 years with the majority of assets depreciated over 40 years. Cavern storage and other assets are depreciated using the straight line method over three to 40 years with the majority of assets depreciated over 40 years. These rates are established to depreciate remaining net book value over the shorter of their useful lives or economic lives. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Intangible Assets ($ millions) Goodwill Purchase and Sale Contracts and Other Customer Relationships Purchase Option Total Total Goodwill & Intangible Assets Cost Balance at December 31, 2017 3,871 216 638 277 1,131 5,002 Additions and other 7 11 1 — 12 19 Transfers — — — (277 ) (277 ) (277 ) Balance at December 31, 2018 3,878 227 639 — 866 4,744 Additions and other — 13 — — 13 13 Acquisition (Note 6) 809 — 1,254 — 1,254 2,063 Foreign exchange adjustments (3 ) — (12 ) — (12 ) (15 ) Balance at December 31, 2019 4,684 240 1,881 — 2,121 6,805 Amortization Balance at December 31, 2017 — 145 143 — 288 288 Amortization — 19 28 — 47 47 Balance at December 31, 2018 — 164 171 — 335 335 Amortization — 10 31 — 41 41 Balance at December 31, 2019 — 174 202 — 376 376 Carrying amounts Balance at December 31, 2018 3,878 63 468 — 531 4,409 Balance at December 31, 2019 4,684 66 1,679 — 1,745 6,429 Intangible assets with a finite useful life are amortized using the straight line method over 7 to 40 years. The purchase option attributable to Facilities of $277 million to assume an additional interest in the Younger Facilities was reclassified to property, plant and equipment on exercise of the option effective April 1, 2018. The aggregate carrying amount of intangible assets and goodwill allocated to each operating segment is as follows: As at December 31 ($ millions) 2019 2018 Goodwill Intangible Assets Total Goodwill Intangible Assets Total Pipelines 2,703 1,505 4,208 1,897 278 2,175 Facilities 541 97 638 541 102 643 Marketing & New Ventures 1,440 112 1,552 1,440 131 1,571 Corporate — 31 31 — 20 20 4,684 1,745 6,429 3,878 531 4,409 Goodwill Impairment Testing For the purpose of impairment testing, goodwill is allocated to Pembina’s operating segments which represent the lowest level within Pembina at which goodwill is monitored for management purposes. Consistent with prior year, impairment testing for goodwill was performed as at September 30, 2019 other than goodwill acquired in the Acquisition (Note 6) on December 16, 2019 which was supported by the acquisition valuation. The recoverable amount was determined using the fair value less costs of disposal approach by discounting each operating segment’s expected future cash flows. The key assumptions that influence the calculation of the recoverable amounts include: • Cash flows for the first five years are projected based on past experience, actual operating results and the business plan approved by management. Cash flows for Pipelines and Facilities incorporate assumptions regarding contract renewal volumes and rates, which are based on market expectations. In addition, revenue and cost of product projections for Marketing & New Ventures incorporate assumptions regarding volumes and commodity pricing, which are sensitive to changes in the commodity price environment. • Cash flows for the remaining years of the useful lives of the assets within each operating segment are extrapolated for periods up to 75 years ( 2018 : 75 years) using a constant medium-term inflation rate, except where contracted, long-term cash flows indicate that no inflation should be applied or a specific reduction in cash flows was more appropriate. • Pre-tax discount rates were applied in determining the recoverable amount of operating segments. Discount rates were estimated based on past experience, the risk free rate and average cost of debt, targeted debt to equity ratio, in addition to estimates of the specific operating segment's equity risk premium, size premium, projection risk and betas. For each operating segment, key assumptions and discount rate sensitivity are presented below: Operating Segments 2019 Pipelines Facilities Marketing & New Ventures (Percent) Pre-tax discount rate 6.80 6.48 10.57 Adjusted inflation rate 1.16 1.62 1.80 Incremental increase in discount rate that would result in carrying value equal to recoverable amount Increase in pre-tax discount rate 4.14 4.85 7.65 The level of the fair value hierarchy within which the fair value measurement is categorized in accordance with IFRS 13 Fair Value Measurement is Level 3 with inputs which are unobservable inputs for the associated assets within each operating segment . |
INVESTMENTS IN EQUITY ACCOUNTED
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES | 12 Months Ended |
Dec. 31, 2019 | |
Interests In Other Entities [Abstract] | |
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES | INVESTMENTS IN EQUITY ACCOUNTED INVESTEES Ownership Interest at December 31 Share of Profit (Loss) from Equity Investments Investment in Equity Accounted Investees at December 31 12 Months Ended December 31 ($ millions) 2019 2018 2019 2018 2019 2018 Alliance 50 % 50 % 149 160 2,620 2,799 Aux Sable 42.7% - 50% 42.7% - 50% 51 102 426 480 Ruby (1) - - 120 118 1,273 1,648 Veresen Midstream 45 % 45.3 % 48 26 1,348 1,324 CKPC 50 % 50 % (1 ) — 171 — Other 50% - 75% 50% - 75% 3 5 116 117 370 411 5,954 6,368 (1) Pembina owns a 50 percent convertible preferred interest in Ruby. Investments in equity accounted investees include the unamortized excess of the purchase price over the underlying net book value of the investee's assets and liabilities at the purchase date, which is comprised of $98 million ( 2018 : $98 million ) Goodwill, $2.9 billion ( 2018 : $3.0 billion ) in property, plant and equipment and intangibles and $42 million in long-term debt ( 2018 : $52 million ). Pembina has US $2.3 billion in Investments in Equity Accounted Investees that is held by entities whose functional currency is the US dollar. The resulting foreign exchange loss for the year ended December 31, 2019 of $ 169 million ( 2018 : $ 295 million gain) has been included in Other Comprehensive Income. Ruby Impairment In December 2019, Pembina recognized an impairment charge of $300 million ( $220 million net of tax) on its convertible preferred interest in Ruby. The impairment charge was the result of an assessment triggered by upcoming contract expirations in a business environment in the Rockies Basin that remains challenged. The recoverable amount of Ruby was was estimated to be $1.3 billion , calculated using a value in use approach by discounting expected cash flows resulting from Pembina's convertible preferred share interest. Key assumptions that influenced the calculation of the recoverable amount include incremental future contracts (including volumes associated with the Jordan Cove LNG Project being approved and placed in to service), renewals and volumes, future financing within the investment, Pembina's ability to utilize available tax deductions, and the discount rate. Pembina applied a discount rate of 8 percent in calculating the recoverable amount, which was determined using comparable preferred share yields adjusted for the specific risk profile of the investment. If the discount rate used to calculate the impairment was higher by 50 basis points, it would have resulted in an increase to the impairment charge of $80 million ( $60 million net of tax). If the discount rate used to calculate the impairment was lower by 50 basis points, it would have resulted in a decrease to the impairment charge of $90 million ( $65 million net of tax). Distributions Distributions received from equity investments for the year ended December 31, 2019 were $575 million ( 2018 : $622 million ) and are included in Operating Activities in the Consolidated Statement of Cash Flows. Distributions from Alliance and Veresen Midstream are subject to satisfying certain financing conditions including a minimum debt service coverage ratio requirement. Contributions Contributions made to investments in equity accounted investees for the year ended December 31, 2019 were $206 million ( 2018 : $58 million ) and are included in investing activities in the Consolidated Statement of Cash Flows. Contributions were largely related to funding CKPC and expansions at Veresen Midstream. Summarized Financial Information Summarized combined financial information of equity accounted investees (presented at 100 percent) is as follows: For the years ended December 31 ($ millions) 2019 2018 Net Income and Comprehensive Income Revenue 3,114 3,605 Cost of sales (1,178 ) (1,566 ) General and administrative expense (204 ) (171 ) Depreciation and amortization (486 ) (511 ) Finance costs and other (286 ) (308 ) Net Income and Comprehensive Income 960 1,049 Net income and Comprehensive Income attributable to Pembina 370 411 As at December 31 ($ millions) 2019 2018 Balance Sheet Current assets 797 838 Non-current assets 11,379 11,667 Current liabilities 802 908 Non-current liabilities 4,985 5,262 Financing Activities On March 28, 2019, Ruby Pipeline, L.L.C., in which Pembina owns a 50 percent preferred interest, amended the maturity date of its 364-day term loan to March 26, 2020. The term loan will continue to amortize at US $16 million per quarter (US $8 million per quarter net to Pembina), beginning March 2019, until a final bullet payment of US $78 million (US $39 million net to Pembina) is payable March 26, 2020, unless otherwise extended. On September 26, 2019, Veresen Midstream, successfully amended and extended its senior secured credit facilities, which were originally scheduled to mature on April 20, 2022, to April 20, 2024. Under the terms of the amendment and extension reached with a syndicate of lenders, Veresen Midstream increased its borrowing capacity to $225 million under the revolving credit facility and to $2.6 billion of availability under the term facility. Amortization payments of the term facility are deferred twenty-four months, recommencing again on September 30, 2021. On December 10, 2019, Alliance Pipeline Limited Partnership amended and extended its revolving credit facility. The maturity date was extended to December 12, 2022, and the supplemental commitments provision was exercised, increasing total borrowing capacity by $100 million to $300 million . Subsequent to year-end, on February 27, 2020, Canada Kuwait Petrochemical Limited Partnership closed a syndicated senior secured credit agreement consisting of a US$1.7 billion amortizing term facility, and a US$150 million revolving facility, which have been guaranteed equally by the owners through the completion of construction on a several basis. The final maturity date of the term facility and revolving facility is February 27, 2027. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
INCOME TAXES | INCOME TAXES The movements of the components of the deferred tax assets and deferred tax liabilities are as follows: ($ millions) Balance at December 31, 2018 Recognized in Earnings Recognized in Other Comprehensive Income Acquisition Equity Other Balance at December 31, 2019 Deferred income tax assets Derivative financial instruments (18 ) 5 — — — — (13 ) Employee benefits 9 (1 ) 1 — — — 9 Share-based payments 26 (2 ) — — — — 24 Provisions 156 29 — 20 — — 205 Benefit of loss carryforwards 153 256 — 13 — (22 ) 400 Other deductible temporary differences 68 (39 ) — 2 (3 ) — 28 Deferred income tax liabilities Property, plant and equipment 1,660 301 — 136 — 8 2,105 Intangible assets 118 (14 ) — 180 — — 284 Investments in equity accounted investees 1,262 (155 ) — — — — 1,107 Taxable limited partnership income deferral 122 (46 ) — — — — 76 Other taxable temporary differences 6 (12 ) — — — (7 ) (13 ) Total deferred tax liabilities 2,774 (174 ) (1 ) 281 3 23 2,906 ($ millions) Balance at December 31, 2017 Recognized in Earnings Recognized in Other Comprehensive Income Acquisition Equity Other Balance at December 31, 2018 Deferred income tax assets Derivative financial instruments 11 (29 ) — — — — (18 ) Employee benefits 7 — 2 — — — 9 Share-based payments 21 5 — — — — 26 Provisions 153 3 — — — — 156 Benefit of loss carryforwards 180 (33 ) — (7 ) — 13 153 Other deductible temporary differences 56 16 — — (4 ) — 68 Deferred income tax liabilities Property, plant and equipment 1,361 299 — — — — 1,660 Intangible assets 198 (80 ) — — — — 118 Investments in equity accounted investees 1,173 89 — — — — 1,262 Taxable limited partnership income deferral 56 66 — — — — 122 Other taxable temporary differences 16 (18 ) — — — 8 6 Total deferred tax liabilities 2,376 394 (2 ) 7 4 (5 ) 2,774 Pembina's consolidated statutory tax rate for the year ended December 31, 2019 was 26.7 percent ( 2018 : 27.0 percent). Reconciliation of Effective Tax Rate For the years ended December 31 ($ millions, except as noted) 2019 2018 Earnings before income tax 1,528 1,742 Statutory tax rate 26.7 % 27.0 % Income tax at statutory rate 408 470 Tax rate changes and foreign rate differential (359 ) (16 ) Changes in estimate and other (16 ) 9 Permanent items 3 1 Income tax expense 36 464 In the second quarter of 2019, the enactment of Bill 3 Job Creation Tax Cut Act ("Alberta Corporate Tax Amendment") reduced the corporate income tax rate from 12 percent to eight percent over a four-year period which resulted in a deferred income tax recovery of $305 million . Income Tax Expense For the years ended December 31 ($ millions) 2019 2018 Current tax expense 210 70 Deferred tax expense Origination and reversal of temporary differences 393 368 Tax rate changes on deferred tax balances (345 ) (1 ) (Increase) decrease in tax loss carry forward (222 ) 27 Total deferred tax (recovery) expense (174 ) 394 Total income tax expense 36 464 Deferred Tax Items Recovered Directly in Equity For the years ended December 31 ($ millions) 2019 2018 Share issue costs (3 ) (4 ) Other comprehensive income (loss) 1 2 Deferred tax items recovered directly in equity (2 ) (2 ) Pembina has temporary differences associated with its investments in subsidiaries. At December 31, 2019 , Pembina has no t recorded a deferred tax asset or liability for these temporary differences ( 2018 : nil ) as Pembina controls the timing of the reversal and it is not probable that the temporary differences will reverse in the foreseeable future. At December 31, 2019 , Pembina had US$1.1 billion ( 2018 : US$221 million ) of U.S. tax losses that will expire after 2030 and $67 million ( 2018 : $349 million ) of Canadian tax losses that will expire after 2037. Pembina has determined that it is probable that future taxable profits will be sufficient to utilize these losses. |
TRADE PAYABLES AND OTHER
TRADE PAYABLES AND OTHER | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
TRADE PAYABLES AND OTHER | TRADE PAYABLES AND OTHER As at December 31 ($ millions) 2019 2018 Trade payables 717 519 Other payables & accrued liabilities 296 284 Total trade payables and other 1,013 803 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of leases [Abstract] | |
LEASES | LEASES Lessee Leases Pembina enters into arrangements to secure access to assets necessary for operating the business. Leased (right-of-use) assets include terminals, rail, buildings, land and other assets. Total cash outflows related to leases were $83 million for the 12 months ended December 31, 2019 . Right-of-Use Assets ($ millions) Terminals Rail Buildings Land & Other Total Balance at January 1, 2019 (Note 3) — 221 127 79 427 Additions — 54 1 58 113 Acquisition (Note 6) 317 — 7 24 348 Amortization — (37 ) (17 ) (12 ) (66 ) Balance at December 31, 2019 317 238 118 149 822 Included in additions is $45 million related to the remeasurement of the decommissioning provision for the restoration of leased land assets to the condition required by the terms of the underlying lease subsequent to the Kinder Acquisition. Lessor Leases Pembina has entered into contracts for the use of its assets that have resulted in lease treatment for accounting purposes. Assets under operating leases include pipelines, terminals and storage caverns. The carrying value of property, plant and equipment under operating leases at December 31, 2019 is $664 million (2018: $679 million ). Assets under finance leases include office sub-leases. Pembina is continuing to obtain and verify information required to determine the identification and classification of lessor leases acquired on December 16, 2019 as part of the Kinder Acquisition. Lessor lease identification could materially impact the classification of acquired assets in the final purchase price allocation, the classification and carrying value of acquired assets at the reporting date, and the following disclosures. Based on information available at the reporting date, Pembina estimates the total undiscounted lessor operating lease payments related to assets acquired as part of the Kinder Acquisition to be approximately $175 million and the carrying value of property, plant and equipment under operating leases at December 31, 2019 to be $58 million . Maturity of Lease Receivables As at December 31, 2019 Operating Leases (1) Finance Leases ($ millions) Less than one year 90 6 One to two years 89 7 Two to three years 89 6 Three to four years 89 4 Four to five years 89 4 More than five years 910 12 Total undiscounted lease payments 1,356 39 Unearned finance income (4 ) Finance lease receivable 35 (1) Excludes the total undiscounted lessor operating lease payments of $175 million related to assets acquired as part of the Kinder Acquisition as noted above. Finance lease receivables are included in advances to related parties and other assets on the Consolidated Statement of Financial Position. |
LOANS AND BORROWINGS
LOANS AND BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
LOANS AND BORROWINGS | LOANS AND BORROWINGS This note provides information about the contractual terms of Pembina's interest-bearing loans and borrowings, which are measured at amortized cost. Carrying Value, Terms and Conditions, and Debt Maturity Schedule Carrying Value ($ millions) Authorized at December 31, 2019 Nominal interest Rate Year of Maturity December 31, 2019 December 31, 2018 Senior unsecured credit facilities (1)(4) 3,020 3.25 (2) Various (1) 2,097 1,305 Senior unsecured notes – series A 73 5.57 2020 74 76 Senior unsecured notes – series C 200 5.58 2021 199 199 Senior unsecured notes – series D — 5.91 2019 — 267 Senior unsecured medium-term notes series 1 250 4.89 2021 250 250 Senior unsecured medium-term notes series 2 450 3.77 2022 449 449 Senior unsecured medium-term notes series 3 450 4.75 2043 446 446 Senior unsecured medium-term notes series 4 600 4.81 2044 596 596 Senior unsecured medium-term notes series 5 450 3.54 2025 449 448 Senior unsecured medium-term notes series 6 500 4.24 2027 498 498 Senior unsecured medium-term notes series 7 500 3.71 2026 498 498 Senior unsecured medium-term notes series 8 650 2.99 2024 646 646 Senior unsecured medium-term notes series 9 550 4.74 2047 542 541 Senior unsecured medium-term notes series 10 400 4.02 2028 398 398 Senior unsecured medium-term notes series 11 300 4.75 2048 298 298 Senior unsecured medium-term notes series 12 400 3.62 2029 398 — Senior unsecured medium-term notes series 13 700 4.54 2049 714 — Senior unsecured medium-term notes series 14 600 2.56 2023 598 — Senior unsecured medium-term notes series 15 600 3.31 2030 597 — Senior unsecured medium-term notes 3A 50 5.05 2022 52 50 Senior unsecured medium-term notes 4A — 3.06 2019 — 205 Senior unsecured medium-term notes 5A 350 3.43 2021 353 353 Finance lease liabilities and other (3) — — 14 Total interest bearing liabilities 10,152 7,537 Less current portion (74 ) (480 ) Total non-current 10,078 7,057 (1) Pembina's unsecured credit facilities include a $2.5 billion revolving facility that matures May 2024, a $500 million non-revolving term loan that matures August 2022 and a $20 million operating facility that matures May 2020, which is typically renewed on an annual basis. (2) The nominal interest rate is the weighted average of all drawn credit facilities based on Pembina's credit rating at December 31, 2019 . Borrowings under the credit facilities bear interest at prime, Bankers' Acceptance, or LIBOR rates, plus applicable margins. (3) On adoption of IFRS 16 on January 1, 2019, finance leases previously reported in loans and borrowings were reclassified to lease liabilities. See Note 3. (4) At December 31, 2019 , US$454 million was drawn on the $2.5 billion revolving credit facility ( 2018 : $ nil ). On April 3, 2019, Pembina closed an offering of $800 million of senior unsecured medium-term notes. The offering was conducted in two tranches, consisting of $400 million in senior unsecured medium-term notes, series 12, having a fixed coupon of 3.62 percent per annum, paid semi-annually, and maturing on April 3, 2029 and $400 million in senior unsecured medium-term notes, series 13, having a fixed coupon of 4.54 percent per annum, paid semi-annually, and maturing on April 3, 2049. On May 31, 2019, Pembina completed an extension on its unsecured $2.5 billion revolving credit facility, which now matures on May 31, 2024. On June 13, 2019, Pembina's $200 million senior unsecured medium term note 4A matured and was fully repaid. On September 12, 2019, Pembina closed an offering of $1.5 billion of senior unsecured medium-term notes. The offering was conducted in three tranches, consisting of $600 million in senior unsecured medium-term notes, series 14, having a fixed coupon of 2.56 percent per annum, paid semi-annually, and maturing on June 1, 2023; $600 million in senior unsecured medium-term notes, series 15, having a fixed coupon of 3.31 percent per annum, paid semi-annually, and maturing on February 1, 2030; and $300 million issued through a re-opening of Pembina's senior unsecured medium-term notes, series 13, having a fixed coupon of 4.54 percent per annum, paid semi-annually, and maturing on April 3, 2049. On September 19, 2019, Pembina fully-repaid its unsecured $1.0 billion non-revolving term loan. On November 18, 2019, Pembina's $267 million senior unsecured note, series D, matured and was fully repaid. On December 16, 2019, Pembina closed a $500 non-revolving term loan with certain existing lenders. The term loan has an initial term of three years and is pre-payable at Pembina's option. The other terms and conditions of the term loan, including financial covenants, are substantially similar to Pembina's $2.5 billion revolving credit facility. Subsequent to year-end, on January 10, 2020, Pembina closed an offering of $1.0 billion of senior unsecured medium-term notes. The offering was conducted in three tranches, consisting of $250 million issued through a re-opening of Pembina's senior unsecured medium-term notes, series 10, having a fixed coupon of 4.02 percent per annum, paid semi-annually and maturing on March 27, 2028; $500 million issued through a re-opening of Pembina's senior unsecured medium-term notes, series 11, having a fixed coupon of 4.75 percent per annum, paid semi-annually and maturing on March 26, 2048; and $250 million issued through a re-opening of Pembina's senior unsecured medium-term notes, series 12, having a fixed coupon of 3.62 percent per annum, paid semi-annually and maturing on April 3, 2029. All facilities are governed by specific debt covenants which Pembina was in compliance with at December 31, 2019 ( 2018 : in compliance). For more information about Pembina's exposure to interest rate, foreign currency and liquidity risk, see Note 24 Financial Instruments . |
DECOMISSIONING PROVISION
DECOMISSIONING PROVISION | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
DECOMMISSIONING PROVISION | DECOMMISSIONING PROVISION ($ millions) 2019 2018 Balance at January 1 573 551 Unwinding of discount rate 14 12 Change in rates 191 — Acquisition (Note 6) 74 — Additions 28 18 Change in cost estimates and other (13 ) (8 ) Total 867 573 Less current portion (included in accrued liabilities) (3 ) (4 ) Balance at December 31 864 569 The decommissioning provision reflects the discounted cash flows expected to be incurred to decommission Pembina's pipeline systems, gas processing and fractionation plants, storage and terminalling hubs, including estimated environmental reclamation and remediation costs. Changes in the measurement of the decommissioning provision are added to, or deducted from, the cost of the related property, plant and equipment or right of use asset. When a re-measurement of the decommissioning provision relates to a retired asset, the amount is recorded in earnings. The undiscounted cash flows at the time of decommissioning are calculated using an estimated timing of economic outflows ranging from one to 83 years , with the majority estimated at 50 years . The estimated economic lives of the underlying assets form the basis for determining the timing of economic outflows. At December 31, 2018 , Pembina used a 1.8 percent inflation rate per annum and a risk-free nominal rate of 2.3 percent to calculate the present value of the decommissioning provision. In the third quarter of 2019, due to forces influencing global capital markets, long-term risk free nominal rates in Canada declined below target inflation rates, implying a negative real rate of return. Pembina determined that applying these rates to current cost estimates would not provide an accurate measurement of the decommissioning liability as observable stand-alone risk free real rates of return continue to be positive. To provide a more accurate measurement of the liability, Pembina applied a risk-free real return rate of 0.3 percent to estimate the present value of the decommissioning provision at September 30, 2019, resulting in a change in estimate. The risk-free real return rate represents an observable, market based risk-free rate of return after adjusting for inflation. In the fourth quarter of 2019, Pembina continued to apply a risk free real return rate of 0.3 percent to estimate the present value of the decommissioning provision at December 31, 2019. The change in rates of $191 million includes $135 million resulting from the recalculation of the Kinder Acquisition decommissioning provision using the real risk free rate of 0.3 percent compared to the risk adjusted rate at the acquisition date in the purchase price equation. The decommissioning provision reflects the discounted cash flows expected to be incurred to decommission the Company's pipeline systems, gas processing and fractionation plants, and storage and terminalling hubs, including the addition of environmental reclamation and remediation costs in the current year. The undiscounted cash flows at the time of decommissioning are calculated using an estimated timing of economic outflows ranging from 1 to 83 years, with the majority estimated at 50 years. The estimated economic lives of the underlying assets form the basis for determining the timing of economic outflows. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2019 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
SHARE CAPITAL | SHARE CAPITAL Pembina is authorized to issue an unlimited number of common shares, without par value, 254,850,850 Class A preferred shares, issuable in series and an unlimited number of Class B preferred shares. The holders of the common shares are entitled to receive notice of, attend and vote at any meeting of the shareholders of Pembina, receive dividends declared and share in the remaining property of Pembina upon distribution of the assets of Pembina among its shareholders for the purpose of winding-up its affairs. Common Share Capital ($ millions, except as noted) Number of Common Shares (millions) Common Share Capital Balance at December 31, 2017 503 13,447 Debenture conversions 3 140 Share-based payment transactions 2 75 Balance at December 31, 2018 508 13,662 Issued on Acquisition, net of issue costs (Note 6) 36 1,710 Share-based payment transactions 4 167 Balance at December 31, 2019 548 15,539 Preferred Share Capital ($ millions, except as noted) Number of Preferred Shares (millions) Preferred Share Capital Balance at December 31, 2017 100 2,424 Part VI.1 tax — (1 ) Balance at December 31, 2018 100 2,423 Class A, Series 23 Preferred shares issued on Acquisition, net of issue costs (Note 6) 12 293 Class A, Series 25 Preferred shares issued on Acquisition, net of issue costs (Note 6) 10 243 Part VI.1 tax — (3 ) Balance at December 31, 2019 122 2,956 On December 1, 2018, none of the 10 million Cumulative Redeemable Rate Reset Class A Preferred Series 1 shares outstanding were converted into Cumulative Redeemable Floating Rate Class A Preferred Series 2 shares. On March 1, 2019, none of the six million Cumulative Redeemable Rate Reset Class A Preferred Series 3 shares outstanding were converted into Cumulative Redeemable Floating Rate Class A Preferred Series 4 shares. On March 31, 2019, none of the six million Cumulative Redeemable Rate Reset Class A Preferred Series 17 shares outstanding were converted into Cumulative Redeemable Floating Rate Class A Preferred Series 18 shares. On June 3, 2019, none of the 10 million Cumulative Redeemable Rate Reset Class A Preferred Series 5 shares outstanding were converted into Cumulative Redeemable Floating Rate Class A Preferred Series 6 shares. On December 2, 2019, none of the 10 million Cumulative Redeemable Rate Reset Class A Preferred Series 7 shares outstanding were converted into Cumulative Redeemable Floating Rate Class A Preferred Series 8 shares. On December 16, 2019, in connection with the Kinder Acquisition, the outstanding preferred shares of Kinder Morgan Canada were exchanged for Series 23 and 25 Class A preferred shares with similar terms and conditions as the shares previously issued by Kinder Morgan Canada. Dividends on the Series 23 and 25 Class A preferred shares will continue to be paid on the 15 th February, May, August and November in each year, if, as and when declared by the Board of Directors. Dividends The following dividends were declared by Pembina: For the years ended December 31 ($ millions) 2019 2018 Common shares Common shares $2.36 per qualifying share (2018: $2.24) 1,213 1,131 Preferred shares $1.23 per Series 1 preferred share (2018: $1.06) 12 11 $1.13 per Series 3 preferred share (2018: $1.18) 7 7 $1.19 per Series 5 preferred share (2018: $1.25) 12 12 $1.12 per Series 7 preferred share (2018: $1.13) 11 11 $1.19 per Series 9 preferred share (2018: $1.19) 11 11 $1.44 per Series 11 preferred share (2018: $1.44) 10 10 $1.44 per Series 13 preferred share (2018: $1.44) 14 14 $1.12 per Series 15 preferred share (2018: $1.12) 9 9 $1.22 per Series 17 preferred share (2018: $1.25) 7 8 $1.25 per Series 19 preferred share (2018: $1.25) 10 10 $1.23 per Series 21 preferred share (2018: $1.20) 20 19 $0.16 per Series 23 preferred share (2018: nil) 2 — $0.16 per Series 25 preferred share (2018: nil) 1 — 126 122 On May 2, 2019, Pembina's Board of Directors approved a five percent increase to its monthly common share dividend rate (from $0.19 per common share to $0.20 per common share), commencing with the dividend paid on June 14, 2019. On December 16, 2019, upon closing of the Kinder Acquisition, Pembina's Board of Directors approved a $0.01 per common share increase to its monthly common share dividend rate (from $0.20 per common share to $0.21 per common share), commencing with the dividend paid on February 14, 2020. On January 9, 2020, Pembina announced that its Board of Directors had declared a dividend of $0.21 per qualifying common share ( $2.52 annually) in the total amount of $115 million , payable on February 14, 2020 to shareholders of record on January 24, 2019. Pembina's Board of Directors also declared quarterly dividends for Pembina's preferred shares as outlined in the following table: Series Record Date Payable Date Per Share Amount Dividend Amount ($ millions) Series 1 February 3, 2020 March 2, 2020 $0.306625 3 Series 3 February 3, 2020 March 2, 2020 $0.279875 2 Series 5 February 3, 2020 March 2, 2020 $0.285813 3 Series 7 February 3, 2020 March 2, 2020 $0.273750 3 Series 9 February 3, 2020 March 2, 2020 $0.296875 3 Series 11 February 3, 2020 March 2, 2020 $0.359375 2 Series 13 February 3, 2020 March 2, 2020 $0.359375 4 Series 15 March 16, 2020 March 31, 2020 $0.279000 2 Series 17 March 16, 2020 March 31, 2020 $0.301313 2 Series 19 March 16, 2020 March 31, 2020 $0.312500 3 Series 21 February 3, 2020 March 2, 2020 $0.306250 5 Series 23 January 31, 2020 February 18, 2020 $0.328125 4 Series 25 January 31, 2020 February 18, 2020 $0.325000 3 On February 5, 2020, Pembina announced that its Board of Directors had declared a dividend of $0.21 per common share ( $2.52 annually) in the total amount of $115 million , payable on March 13, 2020 to shareholders of record on February 25, 2020. |
PERSONNEL EXPENSES
PERSONNEL EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
PERSONNEL EXPENSES | PERSONNEL EXPENSES For the years ended December 31 ($ millions) 2019 2018 Salaries and wages 304 254 Share-based compensation expense (Note 23) 66 63 Short-term incentive plan 64 59 Pension plan expense 25 23 Health, savings plan and other benefits 30 21 489 420 PENSION PLAN As at December 31 ($ millions) 2019 2018 Registered defined benefit net obligation 19 19 Supplemental defined benefit net obligation 16 12 Net employee benefit obligations 35 31 Pembina maintains defined contribution plans and non-contributory defined benefit pension plans covering its employees. On April 1, 2018, Pembina exercised its option to assume an additional interest in the Younger extraction and fractionation facilities ("Younger Facilities"). Accordingly, Pembina also assumed the Bargaining Unit Pension Plan for Employees at the Younger Plant ("Younger Plan") with the net obligation of $6 million . Pembina contributes five to 10 percent of an employee's earnings to the defined contribution plan until the employee's age plus years of service equals 50 , at which time they become eligible for the defined benefit plans. Pembina recognized $11 million in expense for the defined contribution plan during the year ( 2018 : $8 million ). The defined benefit plans include a funded registered plan for all eligible employees and an unfunded supplemental retirement plan for those employees affected by the Canada Revenue Agency maximum pension limits. The defined benefit plans are administered by separate pension funds that are legally separated from Pembina. Benefits under the plans are based on the length of service and the annual average best three years of earnings during the last 10 years of service of the employee. Benefits paid out of the plans are not indexed. Pembina measures its accrued benefit obligations and the fair value of plan assets for accounting purposes as at December 31 of each year. The most recent actuarial valuation was at December 31, 2018. The defined benefit plans expose Pembina to actuarial risks such as longevity risk, interest rate risk, and market (investment) risk. Defined Benefit Obligations As at December 31 ($ millions) 2019 2018 Registered Plans Supplemental Plan Registered Plan Supplemental Plan Present value of unfunded obligations — 16 — 12 Present value of funded obligations 250 — 212 — Total present value of obligations 250 16 212 12 Fair value of plan assets 231 — 193 — Recognized liability for defined benefit obligations (19 ) (16 ) (19 ) (12 ) Pembina funds the defined benefit obligation plans in accordance with government regulations by contributing to trust funds administered by an independent trustee. The funds are invested primarily in equities and bonds. Defined benefit plan contributions totalled $20 million for the year ended December 31, 2019 ( 2018 : $19 million ). Pembina has determined that, in accordance with the terms and conditions of the defined benefit plans, and in accordance with statutory requirements of the plans, the present value of refunds or reductions in future contributions is not lower than the balance of the total fair value of the plan assets less the total present value of obligations. As such, no decrease in the defined benefit asset is necessary at December 31, 2019 ( 2018 : nil ). Registered Defined Benefit Pension Plan Assets Comprise As at December 31 (Percent) 2019 2018 Equity securities 62 61 Debt 38 39 100 100 Movement in the Present Value of the Defined Benefit Pension Obligation 2019 2018 ($ millions) Registered Plans Supplemental Plan Registered Plan Supplemental Plan Defined benefits obligations at January 1 212 12 192 11 Benefits paid by the plan (12 ) — (12 ) — Current service costs 15 1 14 1 Interest expense 8 — 7 — Transfer from Younger — — 16 — Actuarial losses (gains) in other comprehensive income 27 3 (5 ) — Defined benefit obligations at December 31 250 16 212 12 Movement in the Present Value of Registered Defined Benefit Pension Plan Assets ($ millions) 2019 2018 Fair value of plan assets at January 1 193 182 Contributions paid into the plan 20 19 Benefits paid by the plan (12 ) (12 ) Return on plan assets 22 (13 ) Transfer from Younger — 10 Interest income 8 7 Fair value of registered plan assets at December 31 231 193 Expense Recognition in Earnings For the years ended December 31 ($ millions) 2019 2018 Registered Plan Current service costs 15 14 Interest on obligation 8 8 Expected return on plan assets (8 ) (7 ) 15 15 The expense is recognized in the following line items in the consolidated statement of comprehensive income: For the years ended December 31 ($ millions) 2019 2018 Registered Plan Operating expenses 7 8 General and administrative expense 8 7 15 15 Expense recognized for the Supplemental Plan was less than $2 million for each of the years ended December 31, 2019 and 2018 . Actuarial Gains and Losses Recognized in Other Comprehensive Income 2019 2018 ($ millions) Registered Plans Supplemental Plan Total Registered Plan Supplemental Plan Total Balance at January 1 (28 ) (1 ) (29 ) (22 ) (1 ) (23 ) Remeasurements: — Financial assumptions (21 ) (1 ) (22 ) 3 — 3 Experience adjustments — — — — — — Return on plan assets excluding interest income 16 — 16 (9 ) — (9 ) Recognized loss during the period after tax (5 ) (1 ) (6 ) (6 ) — (6 ) Balance at December 31 (33 ) (2 ) (35 ) (28 ) (1 ) (29 ) Principal actuarial assumptions used: As at December 31 (weighted average percent) 2019 2018 Discount rate 3.1 % 3.8 % Future pension earning increases 4.0 % 4.0 % Assumptions regarding future mortality are based on published statistics and mortality tables. The current longevities underlying the values of the liabilities in the defined plans are as follows: As at December 31 (years) 2019 2018 Longevity at age 65 for current pensioners Males 21.8 21.7 Females 24.2 24.1 Longevity at age 65 for current member aged 45 Males 22.8 22.8 Females 25.1 25.1 The calculation of the defined benefit obligation is sensitive to the discount rate, compensation increases, retirements and termination rates as set out above. An increase or decrease of the estimated discount rate of 3.1 percent by 100 basis points at December 31, 2019 is considered reasonably possible in the next financial year but would not have a material impact on the obligation. Pembina expects to contribute $21 million to the defined benefit plans in 2020 . |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contracts With Customers [Abstract] | |
REVENUE | REVENUE Revenue has been disaggregated into categories to reflect how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors. a. Revenue Disaggregation 2019 2018 For the years ended December 31 Pipelines Facilities Marketing & New Ventures Total Pipelines Facilities Marketing & New Ventures Total ($ millions) Take-or-pay (1) 1,200 625 — 1,825 979 582 — 1,561 Fee-for-service (1) 387 117 — 504 424 103 — 527 Product sales (2)(3) — 5 4,804 4,809 — 10 5,175 5,185 Revenue from contracts with customers 1,587 747 4,804 7,138 1,403 695 5,175 7,273 Lease and other revenue (4) 63 29 — 92 61 17 — 78 Total external revenue 1,650 776 4,804 7,230 1,464 712 5,175 7,351 (1) Revenue recognized over time. (2) Revenue recognized at a point in time. (3) Revenue reported for 2018 periods have been recast to reflect updated presentation for 2019, where product sales are reported in Marketing & New Ventures. (4) Includes fixed operating lease income of $ 92 million ( 2018 : $78 ) for the 12 months ended December 31, 2019 . b. Contract Balances Significant changes in the contract liabilities balances during the period are as follows: 2019 2018 For the years ended December 31 ($ millions) Take-or-Pay Other Contract Liabilities Total Contract Liabilities Take-or-Pay Other Contract Liabilities Total Contract Liabilities Opening balance 9 159 168 8 149 157 Additions (net in the period) 4 35 39 5 33 38 Acquisition (Note 6) — 77 77 — — — Revenue recognized from contract liabilities (1) (5 ) (48 ) (53 ) (4 ) (23 ) (27 ) Closing balance 8 223 231 9 159 168 Less current portion (2) (8 ) (31 ) (39 ) (9 ) (28 ) (37 ) Ending balance — 192 192 — 131 131 (1) Recognition of revenue related to performance obligations satisfied in the current period that were included in the opening balance of contract liabilities. (2) As at December 31, 2019 , the balance includes $8 million of cash collected under take-or-pay contracts which will be recognized within one year as the customer chooses to ship, process, or otherwise forego the associated service. Contract liabilities depict Pembina's obligation to perform services in the future for which payment has been received from customers. Contract liabilities include up-front payments or non-cash consideration received from customers for future transportation, processing and storage services. Contract liabilities also include consideration received from customers for take-or-pay commitments where the customer has a make-up right to ship or process future volumes under a firm contract. These amounts are non-refundable should the customer not use its make-up rights. Pembina does not have any contract assets. In all instances where goods or services have been transferred to a customer in advance of the receipt of customer consideration, Pembina's right to consideration is unconditional and has therefore been presented as a receivable. c. Revenue Allocated to Remaining Performance Obligations Pembina expects to recognize revenue in future periods that includes current unsatisfied remaining performance obligations totaling $9.3 billion (2018: $10.3 billion ). Over the next five years, this remaining performance obligation will be recognized annually ranging from $1.1 billion (2018: $1.1 billion ) declining to $983 million (2018: $964 million ). Subsequently, up to 2039 (2018: 2039), Pembina will recognize from $977 million (2018: $1.0 billion ) to $13 million (2018: $8 million ) per year. In preparing the above figures, Pembina has taken the practical expedient to exclude contracts that are being accounted for using the practical expedient to recognize revenue in an amount equal to Pembina's right to invoice, as well as the practical expedient to exclude contracts that have original expected durations of one year or less. Variable consideration relating to flow through costs are not included in the amounts presented. These flow through costs do not impact net income or cash flow, and due to the long-term nature of the contracts there is significant uncertainty in estimating these amounts. In addition, Pembina excludes contracted revenue amounts for assets not yet in-service unless both board of directors approval and regulatory approval for the asset has been obtained. |
NET FINANCE COSTS
NET FINANCE COSTS | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
NET FINANCE COSTS | NET FINANCE COSTS For the years ended December 31 ($ millions) 2019 2018 Interest expense on financial liabilities measured at amortized cost: Loans and borrowings 291 268 Convertible debentures — 6 Leases 17 — Unwinding of discount rate 13 12 Finance lease income (1 ) — Loss in fair value of non-commodity-related derivative financial instruments (4 ) (4 ) Foreign exchange gains and other (22 ) (3 ) Net finance costs 294 279 Net interest paid of $ 311 million ( 2018 : $294 million ) includes interest paid during construction and capitalized of $ 42 million ( 2018 : $35 million ). |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Operating Segments [Abstract] | |
OPERATING SEGMENTS | OPERATING SEGMENTS Pembina determines its reportable segments based on the nature of operations and includes three operating segments: Pipelines, Facilities and Marketing & New Ventures. The Pipelines segment includes conventional, oil sands and transmission pipeline systems, crude oil storage and terminalling business and related infrastructure serving various markets and basins across North America. The Facilities segment includes processing and fractionation facilities and related infrastructure that provide Pembina's customers with natural gas and NGL services that are highly integrated with Pembina's other businesses and a bulk marine terminal in the Port of Vancouver, Canada. The Marketing & New Ventures segment undertakes value-added commodity marketing activities including buying and selling products and optimizing storage opportunities, by contracting capacity on Pembina's and various third-party pipelines and utilizing Pembina's rail fleet and rail logistics capabilities. Marketing activities also include identifying commercial opportunities to further develop other Pembina assets. Pembina's Marketing business also includes results from Aux Sable's NGL extraction facility near Chicago, Illinois and other natural gas and NGL processing facilities, logistics and distribution assets in the United States and Canada. The financial results of the operating segments are included below. Performance is measured based on results from operating activities, net of depreciation and amortization, as included in the internal management reports that are reviewed by Pembina's Chief Executive Officer, Chief Financial Officer and other Senior Vice Presidents. These results are used to measure performance as management believes that such information is the most relevant in evaluating results of certain segments relative to other entities that operate within these industries. Intersegment transactions are recorded at market value and eliminated under corporate and intersegment eliminations. For the year ended December 31, 2019 Pipelines Facilities Marketing & New Ventures Corporate & Inter-Division Eliminations Total ($ millions) Revenue from external customers 1,650 776 4,804 — 7,230 Inter-division revenue 137 345 — (482 ) — Total revenue (1)(2) 1,787 1,121 4,804 (482 ) 7,230 Operating expenses 436 344 — (178 ) 602 Cost of goods sold, including product purchases — 4 4,417 (311 ) 4,110 Realized gain on commodity-related derivative financial instruments — — (33 ) — (33 ) Share of profit from equity accounted investees 270 50 50 — 370 Depreciation and amortization included in operations 245 168 51 11 475 Unrealized loss on commodity-related derivative financial instruments — — 13 — 13 Gross profit 1,376 655 406 (4 ) 2,433 Depreciation included in general and administrative — — — 36 36 Other general and administrative 30 14 35 181 260 Other expense 3 — 3 9 15 Impairment of investment in equity accounted investees 300 — — — 300 Reportable segment results from operating activities 1,043 641 368 (230 ) 1,822 Net finance costs (income) 9 23 (8 ) 270 294 Reportable segment earnings (loss) before tax 1,034 618 376 (500 ) 1,528 Capital expenditures 892 569 157 27 1,645 Contributions to equity accounted investees 13 73 177 — 263 For the year ended December 31, 2018 Pipelines Facilities (3) Marketing & New Ventures (3) Corporate & Inter-Division Eliminations Total ($ millions) Revenue from external customers 1,464 712 5,175 — 7,351 Inter-division revenue 124 302 — (426 ) — Total revenue (1)(2) 1,588 1,014 5,175 (426 ) 7,351 Operating expenses 396 313 — (158 ) 551 Cost of goods sold, including product purchases — 8 4,789 (282 ) 4,515 Realized loss on commodity-related derivative financial instruments — — 51 — 51 Share of profit from equity accounted investees 279 30 102 — 411 Depreciation and amortization included in operations 216 149 26 — 391 Unrealized gain on commodity-related derivative financial instruments — — (73 ) — (73 ) Gross profit 1,255 574 484 14 2,327 Depreciation included in general and administrative — — — 26 26 Other general and administrative 26 17 41 169 253 Other expense — 5 12 10 27 Reportable segment results from operating activities 1,229 552 431 (191 ) 2,021 Net finance costs 9 6 16 248 279 Reportable segment earnings (loss) before tax 1,220 546 415 (439 ) 1,742 Capital expenditures 711 348 134 33 1,226 Contributions to equity accounted investees — 56 2 — 58 (1) Total revenue includes $215 million ( 2018 : $265 million ) associated with U.S. revenues. (2) During both periods, one customer accounted for 10 percent or more of total revenues, with $718 million ( 2018 : $792 million ) reported throughout all segments. (3) Revenue and cost of goods sold reported for all 2018 periods have been recast to reflect updated presentation for 2019, where the majority of cost of goods sold and corresponding revenues are reported in Marketing & New Ventures. Geographical Information Non-Current Assets For the years ended December 31 ($ millions) 2019 2018 Canada 26,596 20,936 United States 5,569 4,715 Total non-current assets (1) 32,165 25,651 (1) Excludes deferred income tax assets. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic Earnings Per Common Share The calculation of basic earnings per common share at December 31, 2019 was based on the earnings attributable to common shareholders of $1.4 billion ( 2018 : $1.2 billion ) and a weighted average number of common shares outstanding of 512 million ( 2018 : 505 million ). Diluted Earnings Per common Share The calculation of diluted earnings per common share at December 31, 2019 was based on earnings attributable to common shareholders of $1.4 billion ( 2018 : $1.2 billion ), and weighted average number of common shares outstanding after adjustment for the effects of all dilutive potential common shares of 514 million ( 2018 : 509 million ). Earnings Attributable to Common Shareholders For the years ended December 31 ($ millions) 2019 2018 Earnings 1,492 1,278 Dividends on preferred shares (123 ) (122 ) Cumulative dividends on preferred shares, not yet declared (8 ) (3 ) Basic earnings attributable to common shareholders 1,361 1,153 Effect of after-tax interest on debentures to earnings — 4 Diluted earnings attributable to common shareholders 1,361 1,157 Weighted Average Number of Common Shares (In millions of shares, except as noted) 2019 2018 Issued common shares at January 1 508 503 Effect of shares issued on Acquisition 1 — Effect of shares issued on exercise of options 3 1 Effect of conversion of convertible debentures — 1 Basic weighted average number of common shares at December 31 512 505 Dilutive effect of debentures converted — 2 Dilutive effect of share options on issue 2 2 Diluted weighted average number of common shares at December 31 514 509 Basic earnings per common share (dollars) 2.66 2.28 Diluted earnings per common share (dollars) 2.65 2.28 The average market value of Pembina's shares for purposes of calculating the dilutive effect of share options was based on quoted market prices for the period during which the options were outstanding. |
PENSION PLAN
PENSION PLAN | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits [Abstract] | |
PENSION PLAN | PERSONNEL EXPENSES For the years ended December 31 ($ millions) 2019 2018 Salaries and wages 304 254 Share-based compensation expense (Note 23) 66 63 Short-term incentive plan 64 59 Pension plan expense 25 23 Health, savings plan and other benefits 30 21 489 420 PENSION PLAN As at December 31 ($ millions) 2019 2018 Registered defined benefit net obligation 19 19 Supplemental defined benefit net obligation 16 12 Net employee benefit obligations 35 31 Pembina maintains defined contribution plans and non-contributory defined benefit pension plans covering its employees. On April 1, 2018, Pembina exercised its option to assume an additional interest in the Younger extraction and fractionation facilities ("Younger Facilities"). Accordingly, Pembina also assumed the Bargaining Unit Pension Plan for Employees at the Younger Plant ("Younger Plan") with the net obligation of $6 million . Pembina contributes five to 10 percent of an employee's earnings to the defined contribution plan until the employee's age plus years of service equals 50 , at which time they become eligible for the defined benefit plans. Pembina recognized $11 million in expense for the defined contribution plan during the year ( 2018 : $8 million ). The defined benefit plans include a funded registered plan for all eligible employees and an unfunded supplemental retirement plan for those employees affected by the Canada Revenue Agency maximum pension limits. The defined benefit plans are administered by separate pension funds that are legally separated from Pembina. Benefits under the plans are based on the length of service and the annual average best three years of earnings during the last 10 years of service of the employee. Benefits paid out of the plans are not indexed. Pembina measures its accrued benefit obligations and the fair value of plan assets for accounting purposes as at December 31 of each year. The most recent actuarial valuation was at December 31, 2018. The defined benefit plans expose Pembina to actuarial risks such as longevity risk, interest rate risk, and market (investment) risk. Defined Benefit Obligations As at December 31 ($ millions) 2019 2018 Registered Plans Supplemental Plan Registered Plan Supplemental Plan Present value of unfunded obligations — 16 — 12 Present value of funded obligations 250 — 212 — Total present value of obligations 250 16 212 12 Fair value of plan assets 231 — 193 — Recognized liability for defined benefit obligations (19 ) (16 ) (19 ) (12 ) Pembina funds the defined benefit obligation plans in accordance with government regulations by contributing to trust funds administered by an independent trustee. The funds are invested primarily in equities and bonds. Defined benefit plan contributions totalled $20 million for the year ended December 31, 2019 ( 2018 : $19 million ). Pembina has determined that, in accordance with the terms and conditions of the defined benefit plans, and in accordance with statutory requirements of the plans, the present value of refunds or reductions in future contributions is not lower than the balance of the total fair value of the plan assets less the total present value of obligations. As such, no decrease in the defined benefit asset is necessary at December 31, 2019 ( 2018 : nil ). Registered Defined Benefit Pension Plan Assets Comprise As at December 31 (Percent) 2019 2018 Equity securities 62 61 Debt 38 39 100 100 Movement in the Present Value of the Defined Benefit Pension Obligation 2019 2018 ($ millions) Registered Plans Supplemental Plan Registered Plan Supplemental Plan Defined benefits obligations at January 1 212 12 192 11 Benefits paid by the plan (12 ) — (12 ) — Current service costs 15 1 14 1 Interest expense 8 — 7 — Transfer from Younger — — 16 — Actuarial losses (gains) in other comprehensive income 27 3 (5 ) — Defined benefit obligations at December 31 250 16 212 12 Movement in the Present Value of Registered Defined Benefit Pension Plan Assets ($ millions) 2019 2018 Fair value of plan assets at January 1 193 182 Contributions paid into the plan 20 19 Benefits paid by the plan (12 ) (12 ) Return on plan assets 22 (13 ) Transfer from Younger — 10 Interest income 8 7 Fair value of registered plan assets at December 31 231 193 Expense Recognition in Earnings For the years ended December 31 ($ millions) 2019 2018 Registered Plan Current service costs 15 14 Interest on obligation 8 8 Expected return on plan assets (8 ) (7 ) 15 15 The expense is recognized in the following line items in the consolidated statement of comprehensive income: For the years ended December 31 ($ millions) 2019 2018 Registered Plan Operating expenses 7 8 General and administrative expense 8 7 15 15 Expense recognized for the Supplemental Plan was less than $2 million for each of the years ended December 31, 2019 and 2018 . Actuarial Gains and Losses Recognized in Other Comprehensive Income 2019 2018 ($ millions) Registered Plans Supplemental Plan Total Registered Plan Supplemental Plan Total Balance at January 1 (28 ) (1 ) (29 ) (22 ) (1 ) (23 ) Remeasurements: — Financial assumptions (21 ) (1 ) (22 ) 3 — 3 Experience adjustments — — — — — — Return on plan assets excluding interest income 16 — 16 (9 ) — (9 ) Recognized loss during the period after tax (5 ) (1 ) (6 ) (6 ) — (6 ) Balance at December 31 (33 ) (2 ) (35 ) (28 ) (1 ) (29 ) Principal actuarial assumptions used: As at December 31 (weighted average percent) 2019 2018 Discount rate 3.1 % 3.8 % Future pension earning increases 4.0 % 4.0 % Assumptions regarding future mortality are based on published statistics and mortality tables. The current longevities underlying the values of the liabilities in the defined plans are as follows: As at December 31 (years) 2019 2018 Longevity at age 65 for current pensioners Males 21.8 21.7 Females 24.2 24.1 Longevity at age 65 for current member aged 45 Males 22.8 22.8 Females 25.1 25.1 The calculation of the defined benefit obligation is sensitive to the discount rate, compensation increases, retirements and termination rates as set out above. An increase or decrease of the estimated discount rate of 3.1 percent by 100 basis points at December 31, 2019 is considered reasonably possible in the next financial year but would not have a material impact on the obligation. Pembina expects to contribute $21 million to the defined benefit plans in 2020 . |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangements [Abstract] | |
SHARE-BASED PAYMENTS | SHARE-BASED PAYMENTS At December 31, 2019 , Pembina has the following share-based payment arrangements: Share Option Plan (Equity Settled) Pembina has a share option plan under which employees are eligible to receive options to purchase shares in Pembina. Long-Term Share Unit Award Incentive Plan (Cash-Settled) In 2005, Pembina established a long-term share unit award incentive plan. Under the share-based compensation plan, awards of restricted ("RSU") and performance ("PSU") share units are made to officers, non-officers and directors. The plan results in participants receiving cash compensation based on the value of the underlying notional shares granted under the plan. Payments are based on a trading value of Pembina's common shares plus notional dividends and performance of Pembina. In 2015, Pembina also established a deferred share units ("DSU") plan. Under the DSU plan, directors are required to take at least 50 percent of total director compensation as DSUs. A DSU is a notional share that has the same value as one Pembina common share. Its value changes with Pembina's share price. DSUs do not have voting rights but they accrue dividends as additional DSUs, at the same rate as dividends paid on Pembina's common shares. DSUs are paid out when a director retires from the board and are redeemed for cash using the weighted average of trading price of common shares on the Toronto Stock Exchange ("TSX") for the last five trading days before the redemption date, multiplied by the number of DSUs the director holds. As of January 1, 2018 directors no longer receive meeting fees, but their base retainer and committee retainer has been increased. Terms and Conditions of Share Option Plan and Share Unit Award Incentive Plan The terms and conditions relating to the grants of the share option program and the long-term share unit award incentive plans are listed in the tables below: Grant Date Share Options Granted to Employees (thousands of options, except as noted) Number of Options Contractual Life of Options March 6, 2018 1,993 7 May 14, 2018 310 7 July 10, 2018 424 7 August 15, 2018 961 7 October 10, 2018 94 7 November 13, 2018 939 7 December 31, 2018 34 7 March 5, 2019 2,409 7 April 8, 2019 367 7 July 9, 2019 249 7 August 14, 2019 1,162 7 October 8, 2019 97 7 November 12, 2019 1,145 7 One-third vest on the first anniversary of the grant date, one-third vest on the second anniversary of the grant date and one-third vest on the third anniversary of the grant date. Long-Term Share Unit Award Incentive Plan (1) Grant date RSUs, PSUs and DSUs to Officers, Non-Officers (2) and Directors (thousands of units, except as noted) PSUs (3) RSUs (3) DSUs Total January 1, 2018 404 395 44 843 January 1, 2019 475 460 36 971 (1) Distribution Units are granted in addition to RSU and PSU grants based on notional accrued dividends from RSU and PSU granted but not paid. (2) Non-Officers defined as senior selected positions within Pembina. (3) Contractual life of 3 years. PSUs vest on the third anniversary of the grant date. RSUs vest one-third on the first anniversary of the grant date, one-third on the second anniversary of the grant date and one-third on the third anniversary of the grant date. Actual units awarded are based on the trading value of the shares and performance of Pembina. Disclosure of Share Option Plan The number and weighted average exercise prices of share options as follows: (thousands of options, except as noted) Number of Options Weighted Average Exercise Price (dollars) Outstanding at December 31, 2017 15,677 $40.94 Granted 4,755 $43.86 Exercised (1,729 ) $35.34 Forfeited (523 ) $41.56 Expired (252 ) $49.20 Outstanding at December 31, 2018 17,928 $42.12 Granted 5,470 $48.27 Exercised (3,979 ) $37.95 Forfeited (655 ) $45.29 Expired (180 ) $48.98 Outstanding at December 31, 2019 18,584 $44.65 As of December 31, 2019 , the following options are outstanding: (thousands of options, except as noted) Exercise Price (dollars) Number Outstanding at December 31, 2019 Options Exercisable Weighted Average Remaining Life $29.60 – $41.38 3,466 3,426 3.1 $41.39 – $43.21 3,524 1,618 4.7 $43.22 – $46.00 3,491 2,170 4.2 $46.01 – $48.59 4,350 279 6.2 $48.60 – $52.01 3,753 2,057 3.9 Total 18,584 9,550 4.5 Options are exercised regularly throughout the year. Therefore, the weighted average share price during the year of $48.87 ( 2018 : $44.97 ) is representative of the weighted average share price at the date of exercise. Expected volatility is estimated by considering historic average share price volatility. The weighted average inputs used in the measurement of the fair values at grant date of share options are the following: Share Options Granted For the years ended December 31 (dollars, except as noted) 2019 2018 Weighted average Fair value at grant date 4.12 3.86 Expected volatility (percent) 18.7 20.3 Expected option life (years) 3.67 3.67 Expected annual dividends per option 2.36 2.24 Expected forfeitures (percent) 6.6 6.7 Risk-free interest rate (based on government bonds) (percent) 1.6 2.1 Disclosure of Long-Term Share Unit Award Incentive Plan The long-term share unit award incentive plans was valued using the volume weighted average price for 20 days ending December 31, 2019 of $47.52 ( 2018 : $42.89 ). Actual payment may differ from amount valued based on market price and company performance. Employee Expenses For the years ended December 31 ($ millions) 2019 2018 Share option plan, equity settled 16 14 Long-term share unit award incentive plan 50 49 Share-based compensation expense 66 63 Total carrying amount of liabilities for cash settled arrangements 95 96 Total intrinsic value of liability for vested benefits 57 57 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Financial Risk Management Pembina has exposure to counterparty credit risk, liquidity risk and market risk. Pembina recognizes that effective management of these risks is a critical success factor in managing organization and shareholder value. Risk management strategies, policies and limits ensure risks and exposures are aligned to Pembina's business strategy and risk tolerance. Pembina's Board of Directors is responsible for providing risk management oversight at Pembina and oversees how management monitors compliance with Pembina's risk management policies and procedures and reviews the adequacy of this risk framework in relation to the risks faced by Pembina. Internal audit personnel assist the Board of Directors in its oversight role by monitoring and evaluating the effectiveness of the organization's risk management system. Counterparty Credit Risk Counterparty credit risk represents the financial loss Pembina may experience if a counterparty to a financial instrument or commercial agreement failed to meet its contractual obligations to Pembina in accordance with the terms and conditions of the financial instruments or agreements with Pembina. Counterparty credit risk arises primarily from Pembina's cash and cash equivalents, trade and other receivables, advances to related parties and from counterparties to its derivative financial instruments. The carrying amount of Pembina's cash and cash equivalents, trade and other receivables, advances to related parties and derivative financial instruments represents the maximum counterparty credit exposure, without taking into account security held. Pembina manages counterparty credit risk through established credit management techniques, including conducting comprehensive financial and other assessments for all new counterparties and regular reviews of existing counterparties to establish and monitor a counterparty's creditworthiness, setting exposure limits, monitoring exposures against these limits and obtaining financial assurances where warranted. Pembina utilizes various sources of financial, credit and business information in assessing the creditworthiness of a counterparty including external credit ratings, where available, and in other cases, detailed financial statement analysis in order to generate an internal credit rating based on quantitative and qualitative factors. The establishment of counterparty exposure limits is governed by a Board of Directors designated counterparty exposure limit matrix which represents the maximum dollar amounts of counterparty exposure by debt rating that can be approved for a counterparty. Pembina continues to closely monitor and reassess the creditworthiness of its counterparties, which has resulted in Pembina reducing or mitigating its exposure to certain counterparties where it was deemed warranted and permitted under contractual terms. Financial assurances from counterparties may include guarantees, letters of credit and cash. At December 31, 2019 letters of credit totaling $90 million ( 2018 : $122 million ) were held primarily in respect of customer trade receivables. Pembina typically has collected its trade receivables in full and at December 31, 2019 , 95 percent were current ( 2018 : 99 percent ). Management defines current as outstanding accounts receivable under 30 days past due. Pembina has a general lien and a continuing and first priority security interest in, and a secured charge on, all of a shipper's petroleum products in its custody. At December 31, the aging of trade and other receivables was as follows: Past Due 2019 2018 31-60 days past due 1 2 Greater than 61 days 7 — 8 2 Pembina uses a loss allowance matrix to measure lifetime expected credit losses at initial recognition and throughout the life of the receivable. The loss allowance matrix is determined based on Pembina’s historical default rates over the expected life of trade receivables, adjusted for forward-looking estimates. Management believes the unimpaired amounts that are past due by greater than 30 days are fully collectible based on historical default rates of customers and management’s assessment of counterparty credit risk through established credit management techniques as discussed above. Advances to related parties held at amortized cost consists of funds advanced by Pembina to a jointly controlled entity. Expected credit losses are measured using a probability-weighted estimate of credit losses, measured as the present value of all expected cash shortfalls, discounted at the effective interest rate of the financial asset, using reasonable and supportable information about past events, current conditions and forecasts of future economic conditions. Management considers the risk of default relating to the advances to be low due to their priority ranking against other interests. For 2019 , Pembina recognized no impairment loss allowance ( 2018 : $1 million ). Pembina recognized less than $1 million in impairment losses on financial assets during 2019 ( 2018 : $1 million ). Pembina monitors and manages its concentration of counterparty credit risk on an ongoing basis. Pembina believes these measures minimize its counterparty credit risk but there is no certainty that they will protect it against all material losses. As part of its ongoing operations, Pembina must balance its market and counterparty credit risks when making business decisions. Liquidity Risk Liquidity risk is the risk Pembina will not be able to meet its financial obligations as they come due. The following are the contractual maturities of financial liabilities, including estimated interest payments. Outstanding Balances Due by Period December 31, 2019 Carrying Amount Expected Cash Flows Less Than 1 Year 1 - 3 Years 3 - 5 Years More Than 5 Years ($ millions) Trade payables and accrued liabilities 1,013 1,013 1,013 — — — Loans and borrowings 10,152 14,565 477 2,379 3,337 8,372 Dividends payable 110 110 110 — — — Derivative financial liabilities 9 9 9 — — — Lease liabilities 819 1,152 130 237 179 606 Pembina manages its liquidity risk by forecasting cash flows over a 12 month rolling time period to identify financing requirements. These financing requirements are then addressed through a combination of credit facilities and through access to capital markets, if required. Market Risk Pembina's results are subject to movements in commodity prices, foreign exchange and interest rates. A formal Risk Management Program including policies and procedures has been designed to mitigate these risks. a. Commodity Price Risk Certain of the transportation contracts or tolling arrangements with respect to Pembina's pipeline assets do not include take-or-pay commitments from crude oil and gas producers and, as a result, Pembina is exposed to throughput risk with respect to those assets. A decrease in volumes transported can directly and adversely affect Pembina’s revenues and earnings. The demand for, and utilization of, Pembina's pipeline assets may be impacted by factors such as changing market fundamentals, capacity bottlenecks, operational incidents, regulatory restrictions, system maintenance, weather and increased competition. Market fundamentals, such as commodity prices and price differentials, natural gas and gasoline consumption, alternative energy sources and global supply disruptions outside of Pembina’s control can impact both the supply of and demand for the commodities transported on Pembina’s pipelines. Pembina's Marketing business includes activities related to product storage, terminalling, and hub services. These activities expose Pembina to certain risks relating to fluctuations in commodity prices and, as a result, Pembina may experience volatility in revenue and impairments related to the book value of stored product with respect to these activities. Primarily, Pembina enters into contracts to purchase and sell crude oil, condensate, NGL and natural gas at floating market prices; as a result, the prices of products that are marketed by Pembina are subject to volatility as a result of factors such as seasonal demand changes, extreme weather conditions, market inventory levels, general economic conditions, changes in crude oil markets and other factors. Pembina manages its risk exposure by balancing purchases and sales to secure less volatile margins. Notwithstanding Pembina's management of price and quality risk, marketing margins for commodities can vary and have varied significantly from period to period in the past. This variability could have an adverse effect on the results of Pembina's Marketing business and its overall results of operations. To assist in reducing this inherent variability in its Marketing business, Pembina has invested, and will continue to invest, in assets that have a fee-based revenue component. Pembina is also exposed to potential price declines and decreasing frac spreads between the time Pembina purchases NGL feedstock and sells NGL products. Frac spread is the difference between the sale prices of NGL products and the cost of NGL sourced from natural gas and acquired at prices related to natural gas prices. Frac spreads can change significantly from period to period depending on the relationship between NGL and natural gas prices (the "frac spread ratio"), absolute commodity prices and changes in the Canadian to U.S. dollar exchange rate. In addition to the frac spread ratio changes, there is also a differential between NGL product prices and crude oil prices which can change margins realized for midstream products. The amount of profit or loss made on the extraction portion of the business will generally increase or decrease with frac spreads. This exposure could result in variability of cash flow generated by the Marketing business, which could affect Pembina and the cash dividends that Pembina is able to distribute. Pembina utilizes financial derivative instruments as part of its overall risk management strategy to assist in managing the exposure to commodity price, interest rate, cost of power and foreign exchange risk. As an example of commodity price mitigation, Pembina actively fixes a portion of its exposure to fractionation margins through the use of derivative financial instruments. Additionally, Pembina's Marketing business is also exposed to variability in quality, time and location differentials for various products, and financial instruments may be used to offset Pembina's exposures to these differentials. Pembina does not trade financial instruments for speculative purposes. b. Foreign Exchange Risk Certain of Pembina's cash flows, namely a portion of its commodity-related cash flows, certain cash flows from U.S.-based infrastructure assets and distributions from U.S.-based investments in equity accounted investees, are subject to currency risk, arising from the denomination of specific cash flows in U.S. dollars. Additionally, a portion of Pembina's capital expenditures and contributions or loans to Pembina’s U.S.-based investments in equity accounted investees, may be denominated in U.S. dollars. Pembina monitors, assesses and responds to these foreign currency risks using an active risk management program, which may include the exchange of foreign currency for domestic currency at a fixed rate. c. Interest Rate Risk Interest bearing financial liabilities include Pembina's debt and lease liabilities. Pembina has a floating interest rate debt which subjects Pembina to interest rate risk. At the reporting date, the interest rate profile of Pembina's interest-bearing financial instruments was: As at December 31 ($ millions) 2019 2018 Carrying amounts of financial liability Fixed rate instruments (1) 8,874 6,232 Variable rate instruments (2) 2,097 1,305 10,971 7,537 (1) Includes lease liabilities following the adoption of IFRS 16, see "Changes in Accounting Policies" (2) At December 31, 2019 , Pembina held no positions in financial derivative contracts to fix interest rates ( December 31, 2018 : nil ). Cash Flow Sensitivity Analysis for Variable Rate Instruments A change of 100 basis points in interest rates at the reporting date would have (increased) decreased earnings by the amounts shown below. This analysis assumes that all other variables remain constant. As at December 31 ($ millions) 2019 2018 ± 100 bp ± 100 bp Earnings sensitivity (net) ±9 ±13 Fair Values The fair values of financial assets and liabilities, together with the carrying amounts shown in the consolidated statements of financial position, are shown in the table below. Certain non-derivative financial instruments measured at amortized cost including cash and cash equivalents, trade receivables and other, finance lease receivables, advances to related parties and trade payables and other have been excluded because they have carrying amounts that approximate their fair value due to the nature of the item or the short time to maturity. These instruments would be classified in Level 2 of the fair value hierarchy. 2019 2018 As at December 31 Carrying Fair Value (1) Carrying Value Fair Value (1) ($ millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets carried at fair value Derivative financial instruments 48 — 48 — 54 — 54 — Advances to related parties (2) — — — — 58 — — 58 48 — 48 — 112 — 54 58 Financial liabilities carried at fair value Derivative financial instruments 9 — 9 — 6 — 6 — Financial liabilities carried at amortized cost Loans and borrowings (3) 10,152 — 10,729 — 7,537 — 7,588 — (1) The basis for determining fair value is disclosed in note 5. (2) Advances to related parties carried at fair value consisted of funds advanced by Pembina to a jointly controlled entity with an equity conversion option that was exercised during the first quarter of 2019. US $43 million of advances were converted to shares during the first quarter of 2019 and are included in the Investments in Equity Accounted Investees balance in the condensed consolidated interim statements of financial position at December 31, 2019 . (3) Carrying value of current and non-current balances. Interest Rates Used for Determining Fair Value The interest rates used to discount estimated cash flows, when applicable, are based on the government yield curve at the reporting date plus an adequate credit spread, and were as follows: As at December 31 (percent) 2019 2018 Derivatives 2.0 - 2.5 2.2 - 2.3 Loans and borrowings 2.3 - 4.0 2.6 - 5.6 Fair value of power derivatives are based on market rates reflecting forward curves. Fair Value Hierarchy The fair value of financial instruments carried at fair value is classified according to the following hierarchy based on the amount of observable inputs used to value the instruments. Level 1: Unadjusted quoted prices are available in active markets for identical assets or liabilities as the reporting date. Pembina does not use Level 1 inputs for any of its fair value measurements. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 2 valuations are based on inputs, including quoted forward prices for commodities, time value and volatility factors, which can be substantially observed or corroborated in the marketplace. Instruments in this category include non-exchange traded derivatives such as over-the-counter physical forwards and options, including those that have prices similar to quoted market prices. Pembina obtains quoted market prices for its inputs from information sources including banks, Bloomberg Terminals and Natural Gas Exchange. The majority of Pembina's significant financial instruments carried at fair value are valued using Level 2 inputs. Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). Level 3 valuations use unobservable inputs, such as a financial forecast developed using the entity’s own data for expected cash flows and risk adjusted discount rates, to measure fair value to the extent that relevant observable inputs are not available. The unobservable inputs reflect the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk. In developing unobservable inputs, the entity’s own data is used and adjusted for reasonably available information that would be used by other market participants. Advances to related parties carried at fair value consist of funds advances by Pembina to a jointly controlled entity with an equity conversion option. Fair value is measured on a recurring basis using a valuation model that considers the present value of management's best estimate of future cash flows expected to result from the asset under development in the jointly controlled entity, discounted using a risk-adjusted discount rate. The following table is a summary of the net derivative financial instruments, which is consistent with the gross balances: 2019 2018 As at December 31 ($ millions) Current Asset Non-Current Asset Current Liability Non-Current Liability Total Current Asset Non-Current Asset Current Liability Non-Current Liability Total Commodity, power, storage and rail financial instruments 34 5 (6 ) (3 ) 30 44 — (2 ) — 42 Foreign exchange 6 3 — — 9 10 — (4 ) — 6 Net derivative financial instruments 40 8 (6 ) (3 ) 39 54 — (6 ) — 48 Sensitivity Analysis The following table shows the impact on earnings if the underlying risk variables of the derivative financial instruments changed by a specified amount, with other variables held constant. As at December 31, 2019 ($ millions) (1) + Change - Change Frac spread related Natural gas (AECO +/- $0.25 per GJ) 9 (9 ) NGL (includes propane, butane and condensate) (Belvieu/Conway +/- U.S. $0.10 per gal) (43 ) 43 Foreign exchange (US$ vs. C$) (FX rate +/- $0.10) (46 ) 46 Product margin Crude oil (WTI +/- $2.50 per bbl) (2 ) 2 NGL (includes propane, butane and condensate) (Belvieu/Conway +/- U.S. $0.10 per gal) N/A N/A (1) As at December 31, 2019 , there were no outstanding financial derivative contracts related to power and interest rates. |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
CAPITAL MANAGEMENT | CAPITAL MANAGEMENT Pembina's objective when managing capital is to ensure a stable stream of dividends to shareholders that is sustainable over the long-term. Pembina manages its capital structure based on requirements arising from significant capital development activities, the risk characteristics of its underlying asset base and changes in economic conditions. Pembina manages its capital structure and short-term financing requirements using non-GAAP measures, including the ratios of debt to adjusted EBITDA, debt to total enterprise value, adjusted cash flow to debt and debt to equity. The metrics are used to measure Pembina's financial leverage and measure the strength of Pembina's balance sheet. Pembina remains satisfied that the leverage currently employed in its capital structure is sufficient and appropriate given the characteristics and operations of the underlying asset base. Pembina, upon approval from its Board of Directors, will balance its overall capital structure through new equity or debt issuances, as required. Pembina maintains a conservative capital structure that allows it to finance its day-to-day cash requirements through its operations, without requiring external sources of capital. Pembina funds its operating commitments, short-term capital spending as well as its dividends to shareholders through this cash flow, while new borrowing and equity issuances are primarily reserved for the support of specific significant development activities. The capital structure of Pembina consists of shareholder's equity, comprised of common and preferred equity, plus long-term debt. Long-term debt is comprised of bank credit facilities, unsecured notes and finance lease obligations. Pembina is subject to certain financial covenants in its credit facility agreements and is in compliance with all financial covenants as of December 31, 2019 . Note 16 of these financial statements shows the change in share capital for the year ended December 31, 2019 . |
GROUP ENTITIES
GROUP ENTITIES | 12 Months Ended |
Dec. 31, 2019 | |
Interests In Other Entities [Abstract] | |
GROUP ENTITIES | GROUP ENTITIES Significant Subsidiaries As at December 31 Ownership Interest (percentages) 2019 2018 Pembina Gas Services Limited Partnership 100 100 Pembina Holding Canada L.P. 100 100 Pembina Infrastructure and Logistics L.P. 100 100 Pembina Midstream Limited Partnership 100 100 Pembina Oil Sands Pipeline L.P. 100 100 Pembina Pipeline 100 100 Pembina Empress NGL Partnership 100 100 Ruby Blocker LLC 100 100 Pembina Cochin LLC 100 — |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2019 | |
Related Party [Abstract] | |
RELATED PARTIES | RELATED PARTIES Pembina enters into transactions with related parties in the normal course of business and on terms equivalent to those that prevail in arm's length transactions, unless otherwise noted. Pembina contracts capacity from its equity accounted investee Alliance, advances funds to support operations and provides services, on a cost recovery basis, to investments in equity accounted investees. A summary of the significant related party transactions are as follows: Equity Accounted Investees ($ millions) 2019 2018 For the years ended December 31: Services provided 82 42 Services received 2 — Interest income 10 6 As at December 31: Advances to related parties (1) 131 135 Trade receivables and other 17 12 (1) During the year ended December 31, 2019, Pembina converted $58 million in advances to Canada Kuwait Petrochemical Corporation into equity contributions, and advanced US$31 million (2018: US$31 million) to Ruby Pipeline, L.L.C. and $17 million (2018: nil), net of repayments, to Fort Saskatchewan Ethylene Storage Limited Partnership. Key Management Personnel and Director Compensation Key management consists of Pembina's directors and certain key officers. Compensation In addition to short-term employee benefits, including salaries, director fees and short-term incentives, Pembina also provides key management personnel with share-based compensation, contributes to post employment pension plans and provides car allowances, parking and business club memberships. Key management personnel compensation comprised: For the years ended December 31 ($ millions) 2019 2018 Short-term employee benefits 10 10 Share-based compensation and other 13 13 Total compensation of key management 23 23 Transactions Key management personnel and directors of Pembina control less than one percent of the voting common shares of Pembina (consistent with the prior year). Certain directors and key management personnel also hold Pembina preferred shares. Dividend payments received for the common and preferred shares held are commensurate with other non-related holders of those instruments. Certain officers are subject to employment agreements in the event of termination without just cause or change of control. Post-Employment Benefit Plans Pembina has significant influence over the pension plans for the benefit of their respective employees. No balance payable is outstanding at December 31, 2019 ( December 31, 2018 : nil ). ($ millions) Transaction Value Year Ended December 31 Post-employment benefit plan Transaction 2019 2018 Defined benefit plan Funding 20 19 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments Pembina had the following contractual obligations outstanding at December 31, 2019 : Contractual Obligations Payments Due by Period ($ millions) Total Less than 1 Year 1 – 3 Years 3 – 5 Years After 5 Years Leases (1) 1,152 130 237 179 606 Loans and borrowings (2) 14,565 477 2,379 3,337 8,372 Construction commitments (3) 1,766 1,128 123 33 482 Other (4) 659 109 158 93 299 Total contractual obligations 18,142 1,844 2,897 3,642 9,759 (1) Includes terminals, rail, office space, land and vehicle leases. (2) Excluding deferred financing costs. Including interest payments on senior unsecured notes. (3) Excluding significant projects that are awaiting regulatory approval at December 31, 2019 , projects which Pembina is not committed to construct, and projects that are executed by equity accounted investees. (4) Includes $65 million in commitments related to leases that have not yet commenced. Pembina enters into product purchase agreements and power purchase agreements to secure supply for future operations. Purchase prices of both NGL and power are dependent on current market prices. Volumes and prices for NGL and power contracts cannot be reasonably determined and therefore an amount has not been included in the contractual obligations schedule. Product purchase agreements range from one to 10 years and involve the purchase of NGL products from producers. Assuming product is available, Pembina has secured between 20 and 175 mbpd each year up to and including 2028 . Power purchase agreements range from one to 25 years and involve the purchase of power from electrical service providers. Pembina has secured up to 67 megawatts per day each year up to and including 2043 . Commitments to Equity Accounted Investees Pembina is contractually committed to provide CKPC with funding to construct assets that will form part of CKPC's PDH/PP Facility, subject to certain conditions being met. Pembina has a contractual commitment to advance US $39 million to Ruby by March 26, 2020. Pembina has commitments to provide contributions to certain equity accounted investees based on annual budgets approved by the joint venture partners. Contingencies Pembina, its subsidiaries and its investments in equity accounted investees are subject to various legal and regulatory proceedings and actions arising in the normal course of business. We represent our interests vigorously in all proceedings in which we are involved. Legal and administrative proceedings involving possible losses are inherently complex, and we apply significant judgment in estimating probable outcomes. While the outcome of such actions and proceedings cannot be predicted with certainty, management believes that the resolutions of such actions and proceedings will not have a material impact on Pembina's financial position or results of operations. Letters of Credit Pembina has provided guarantees to various third parties in the normal course of conducting business. The guarantees include financial guarantees to counterparties for product purchases and sales, transportation services, utilities, engineering and construction services. The guarantees have not had and are not expected to have a material impact on Pembina's financial position, earnings, liquidity or capital resources. Pembina has $103 million ( 2018 : $69 million ) in letters of credit issued to facilitate commercial transactions with third parties and to support regulatory requirements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On January 7, 2020, Pembina and Petrochemical Industries Company K.S.C. of Kuwait, announced their equally-owned joint venture entity, Canada Kuwait Petrochemical Limited Partnership ("CKPC"), executed a lump sum engineering, procurement and construction ("EPC") contract related to the construction of the propane dehydrogenation ("PDH") facility within its integrated PDH and polypropylene ("PP") upgrading facility ("PDH/PP Facility"). Pembina’s proportionate share of the capital cost of the PDH/PP Facility, including the 100 percent directly-owned supporting facilities, is estimated at $2.7 billion and going into commercial service in the second half of 2023. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Basis of Measurement and Statement of Compliance | Basis of Measurement and Statement of Compliance The consolidated financial statements have been prepared on a historical cost basis with some exceptions, as detailed in the accounting policies set out below in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB"). Except for the changes described in Note 3, these accounting policies have been applied consistently for all periods presented in these consolidated financial statements. |
Functional and Presentation Currency | Functional and Presentation Currency The consolidated financial statements are presented in Canadian dollars. All financial information presented in Canadian dollars has been disclosed in millions, except where noted. The assets and liabilities of subsidiaries, and investments in equity accounted investees, whose functional currencies are other than Canadian dollars are translated into Canadian dollars at the foreign exchange rate at the balance sheet date, while revenues and expenses of such subsidiaries are translated using average monthly foreign exchange rates, which approximate the foreign exchange rates on the dates of the transactions. Foreign exchange differences arising on translation of subsidiaries and investments in equity accounted investees with a functional currency other than the Canadian dollar are included in other comprehensive income. |
Use of Estimates and Judgments | Use of Estimates and Judgments The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that are based on the facts and circumstances and estimates at the date of the consolidated financial statements and affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Judgments, estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The following judgment and estimation uncertainties are those management considers material to the consolidated financial statements: Judgments (i) Business Combinations Business combinations are accounted for using the acquisition method of accounting. The determination of fair value often requires management to make judgments about future possible events. The assumptions with respect to lease identification, classification and measurement, the fair value of property plant and equipment, intangible assets, decommissioning provisions and contract liabilities acquired, as well as the determination of deferred taxes, generally require the most judgment. (ii) Depreciation and Amortization Depreciation and amortization of property, plant and equipment and intangible assets are based on management's judgment of the most appropriate method to reflect the pattern of an asset's future economic benefit expected to be consumed by Pembina. Among other factors, these judgments are based on industry standards and historical experience. (iii) Impairment Assessment of impairment of non-financial assets is based on management’s judgment of whether or not there are sufficient internal or external factors that would indicate that an asset, investment, or cash generating unit ("CGU") is impaired. The determination of a CGU is based on management's judgment and is an assessment of the smallest group of assets that generate cash inflows independently of other assets. In addition, management applies judgment to assign goodwill acquired as part of a business combination to the CGU or group of CGUs that is expected to benefit from the synergies of the business combination for purposes of impairment testing. When an impairment test is performed, the carrying value of a CGU or group of CGUs is compared to its recoverable amount, defined as the greater of fair value less costs to sell and value in use. As such, the asset composition of a CGU or group of CGUs directly impacts both the carrying value and recoverability of the assets included therein. (iv) Assessment of Joint Control Over Joint Arrangements The determination of joint control requires judgment about the influence Pembina has over the financial and operating decisions of an arrangement and the extent of the benefits it obtains based on the facts and circumstances of the arrangement during the reporting period. Joint control exists when decisions about the relevant activities require the unanimous consent of the parties that control the arrangement collectively. Ownership percentage alone may not be a determinant of joint control. (v) Pattern of Revenue Recognition The pattern of revenue recognition is impacted by management's judgments as to the nature of Pembina's performance obligations, the amount of consideration allocated to performance obligations that are not sold on a stand-alone basis, the valuation of material rights and the timing of when those performance obligations have been satisfied. (vi) Leases Management applies judgment to determine whether a contract is, or contains, a lease from both a lessee and lessor perspective. This assessment is based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. Key judgments include whether a contract identifies an asset (or portion of an asset), whether the lessee obtains substantially all the economic benefits of the asset over the contract term and whether the lessee has the right to direct the asset's use. Judgment is also applied in determining the rate used to discount the lease payments. Estimates (i) Business Combinations Estimates of future cash flows, forecast prices, interest rates, discount rates, cost, market values and useful lives are made in determining the fair value of assets acquired and liabilities assumed. Changes in any of the assumptions or estimates used in determining the fair value of acquired assets and liabilities could impact the amounts assigned to assets, liabilities, intangible assets, goodwill and deferred taxes in the purchase price equation. Future earnings can be affected as a result of changes in future depreciation and amortization, asset or goodwill impairment. (ii) Provisions and Contingencies Management uses judgment in determining the likelihood of realization of contingent assets and liabilities to determine the outcome of contingencies. Provisions recognized are based on management's best estimate of the timing, scope and amount of expected future cash outflows to settle the obligation. Based on the long-term nature of the decommissioning provision, the most significant uncertainties in estimating the provision are the determination of whether a present obligation exists, the discount and inflation rates used, the costs that will be incurred and the timing of when these costs will occur. (iii) Deferred Taxes The calculation of the deferred tax asset or liability is based on assumptions about the timing of many taxable events and the enacted or substantively enacted rates anticipated to be applicable to income in the years in which temporary differences are expected to be realized or reversed. (iv) Depreciation and Amortization Estimated useful lives of property, plant and equipment and intangible assets are based on management's assumptions and estimates of the physical useful lives of the assets, the economic lives, which may be associated with the reserve lives and commodity type of the production area, in addition to the estimated residual value. (v) Impairment of Non-Financial Assets In determining the recoverable amount of a CGU, a group of CGUs or an individual asset, management uses its best estimates of future cash flows, and assesses discount rates to reflect management’s best estimate of a rate that reflects a current market assessment of the time value of money and the specific risks associated with the underlying assets and cash flows. (vi) Impairment of Financial Assets The measurement of financial assets carried at amortized cost includes management’s estimates regarding the expected credit losses that will be realized on these financial assets. (vii) Revenue from Contracts with Customers In estimating the contract value, management makes assessments as to whether variable consideration is constrained or not reasonably estimable, such that an amount or portion of an amount cannot be included in the estimate of the contract value. Management's estimates of the likelihood of a customer’s ability to use outstanding make-up rights may impact the timing of revenue recognition. In addition, in determining the amount of consideration to be allocated to performance obligations that are not sold on a stand-alone basis, management estimates the stand-alone selling price of each performance obligation under the contract, taking into consideration the location and volume of goods or services being provided, the market environment, and customer specific considerations. (viii) Fair Value of Financial Instruments For Level 2 valued financial instruments, management makes assumptions and estimates value based on observable inputs such as quoted forward prices, time value and volatility factors. For Level 3 valued financial instruments, management uses estimates of financial forecasts, expected cash flows and risk adjusted discount rates to measure fair value. (ix) Employee Benefit Obligations An actuarial valuation is prepared to measure Pembina's net employee benefit obligations using management’s best estimates with respect to longevity, discount and inflation rates, compensation increases, market returns on plan assets, retirement and termination rates. (x) Leases In measuring its lease liabilities, management makes assessments of the stand-alone selling prices of each lease and non-lease component for the purposes of allocating consideration to each component. Management applies its best estimate with respect to the likelihood of renewal, extension and termination option exercise in determining the lease term. |
Basis of Consolidation | Basis of Consolidation i) Business Combinations Pembina measures goodwill as the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree, less the fair value of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date. When the excess is negative, a bargain purchase gain is recognized immediately in earnings. Pembina elects on a transaction-by-transaction basis whether to measure non-controlling interest at its fair value, or at its proportionate share of the recognized amount of the identifiable net assets, at the acquisition date. Non-controlling interests represent equity interests in subsidiaries owned by outside parties. The share of net assets of subsidiaries attributable to non-controlling interests is presented as a separate component of equity. Their share of net income and other comprehensive income is also recognized in this separate component of equity. Changes in Pembina's ownership interest in subsidiaries that do not result in a loss of control are accounted for as equity transactions. Adjustments to non-controlling interests are based on a proportionate amount of the net assets of the subsidiary. No adjustments are made to goodwill and no gain or loss is recognized in earnings. Transaction costs, other than those associated with the issue of debt or equity securities, that Pembina incurs in connection with a business combination are expensed as incurred. ii) Subsidiaries Subsidiaries are entities, including unincorporated entities such as partnerships, controlled by Pembina. The financial results of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries are aligned with the policies adopted by Pembina. iii) Joint Arrangements Joint arrangements represent activities where Pembina has joint control established by a contractual agreement. Joint control requires unanimous consent for the relevant financial and operational decisions. A joint arrangement is either a joint operation, whereby the parties have rights to the assets and obligations for the liabilities, or a joint venture, whereby the parties have rights to the net assets. For a joint operation, the consolidated financial statements include Pembina's proportionate share of the assets, liabilities, revenues, expenses and cash flows of the arrangement with items of a similar nature on a line-by-line basis, from the date that joint control commences until the date that joint control ceases. Joint ventures are accounted for using the equity method of accounting and are initially recognized at cost, or fair value if acquired as part of a business combination. Joint ventures are adjusted thereafter for the post-acquisition change in the Company's share of the equity accounted investment's net assets. Pembina's consolidated financial statements include its share of the equity accounted investment's profit or loss and other comprehensive income, or income equal to preferred distributions for certain preferred share interests in equity accounted investees, until the date that joint control ceases. When Pembina's share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest, including any long-term investments, is reduced to nil, and the recognition of further losses is discontinued except to the extent that Pembina has an obligation or has made payments on behalf of the investee. Distributions from investments in equity accounted investees are recognized when received. Acquisition of an incremental ownership in a joint arrangement where Pembina maintains joint control is recorded at cost or fair value if acquired as part of a business combination. Where Pembina has a partial disposal, including a deemed disposal, of a joint arrangement and maintains joint control, the resulting gains or losses are recorded in earnings at the time of disposal. iv) Transactions Eliminated on Consolidation Balances and transactions, and any revenue and expenses arising from intersegment transactions, are eliminated in preparing the consolidated financial statements. Gains arising from transactions with investments in equity accounted investees are eliminated against the investment to the extent of Pembina's interest in the investee. Losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. v) Foreign Currency Transactions in foreign currencies are translated to Pembina's functional currency at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to Pembina's functional currency at the exchange rate at that date, with exchange differences recognized in earnings. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Gains and losses arising from translation of foreign subsidiaries or investments in equity accounted investees with a functional currency other than Pembina's Canadian dollar reporting currency are reflected in other comprehensive income. Asset and liability accounts are translated at the period-end exchange rates while revenues, expenses, gains and losses are translated at the exchange rates in effect at the time of the transaction. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents comprise cash balances, call deposits and short-term investments with original maturities of ninety days or less, and are used by Pembina in the management of its short-term commitments. |
Inventories | Inventories Inventories are measured at the lower of cost and net realizable value and consist primarily of crude oil, NGL and spare parts. The cost of inventories is determined using the weighted average costing method and includes direct purchase costs and when applicable, costs of production, extraction, fractionation, and transportation. Net realizable value is the estimated selling price in the ordinary course of business less the estimated selling costs. All changes in the value of inventories are reflected in earnings. |
Financial Instruments | Financial Instruments Financial assets and liabilities are offset and the net amount presented in the consolidated statement of financial position when, and only when, Pembina has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. i) Non-Derivative Financial Assets Pembina initially recognizes loans, receivables, advances to related parties and deposits on the date that they are originated. All other financial assets are recognized on the trade date at which Pembina becomes a party to the contractual provisions of the instrument. Pembina derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by Pembina is recognized as a separate asset or liability. On derecognition, the difference between the carrying amount of the financial asset and the consideration received is recognized in earnings. Pembina classifies non-derivative financial assets into the following categories: Financial Assets at Amortized Cost A financial asset is classified in this category if the asset is held within a business model whose objective is to collect contractual cash flows on specified dates that are solely payments of principal and interest. At initial recognition, financial assets at amortized cost are recognized at fair value plus directly attributable transaction costs. Subsequent to initial recognition, these financial assets are recorded at amortized cost using the effective interest method less any impairment loss allowances. Financial Assets at Fair Value Through Other Comprehensive Income A financial asset is classified in this category if the asset is held within a business model whose objective is met by both collecting contractual cash flows and selling financial assets. Pembina did not have any financial assets classified as fair value through other comprehensive income during the years covered in these financial statements. Financial Assets at Fair Value Through Earnings A financial asset is classified in this category if it is not classified as a financial asset at amortized cost or a financial asset at fair value through other comprehensive income, or it is an equity instrument designated as such on initial recognition. At initial recognition, and subsequently, these financial assets are recognized at fair value. ii) Non-Derivative Financial Liabilities Pembina initially recognizes financial liabilities on the trade date at which Pembina becomes a party to the contractual provisions of the instrument. Non-derivative financial liabilities are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortized cost using the effective interest method. Pembina derecognizes a financial liability when its contractual obligations are discharged, cancelled or expire. On derecognition, the difference between the carrying value of the liability and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in earnings. Pembina records a modification or exchange of an existing liability as a derecognition of the financial liability if the terms are substantially different, resulting in a difference of more than 10 percent when comparing the present value of the remaining cash flows of the existing liability to the present value of the discounted cash flows under the new terms using the original effective interest rate. If a modification to an existing liability causes a revision to the estimated payments of the liability but is not treated as a derecognition, Pembina adjusts the gross carrying amount of the liability to the present value of the estimated contractual cash flows using the instrument’s original effective interest rate, with the difference recorded in earnings. Pembina's non-derivative financial liabilities are comprised of the following: bank overdrafts, trade payables and accrued liabilities, taxes payable, dividends payable, loans and borrowings including finance lease obligations and other liabilities. Bank overdrafts that are repayable on demand and form an integral part of Pembina's cash management are included as a component of cash and cash equivalents for the purpose of the consolidated statements of cash flows. iii) Common Share Capital Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects. iv) Preferred Share Capital Preferred shares are classified as equity because they bear discretionary dividends and do not contain any obligations to deliver cash or other financial assets. Discretionary dividends are recognized as equity distributions on approval by Pembina's Board of Directors. Incremental costs directly attributable to the issue of preferred shares are recognized as a deduction from equity, net of any tax effects. v) Derivative Financial Instruments Pembina holds derivative financial instruments to manage its interest rate, commodity, power costs and foreign exchange risk exposures. Embedded derivatives are separated from the host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative meet the definition of a derivative, and the combined instrument is not measured at fair value through earnings. Derivatives are recognized initially at fair value with attributable transaction costs recognized in earnings as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes in non-commodity-related derivatives are recognized immediately in earnings as part of net finance costs and changes in commodity-related derivatives are recognized immediately in earnings. |
Property, Plant and Equipment | Property, Plant and Equipment i) Recognition and Measurement Items of property, plant and equipment are measured initially at cost, unless they are acquired as part of a business combination in which case they are initially measured at fair value. Thereafter, property, plant and equipment are recorded net of accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, estimated decommissioning provisions and borrowing costs on qualifying assets. Cost may also include any gain or loss realized on foreign currency transactions directly attributable to the purchase or construction of property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate components of property, plant and equipment. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and is recognized in earnings. ii) Subsequent Costs The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to Pembina, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized and recorded as depreciation expense. The cost of maintenance and repair expenses of the property, plant and equipment are recognized in earnings as incurred. iii) Depreciation Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of the asset, that component is depreciated separately. Land and linefill are not depreciated. Depreciation is recognized in earnings over an asset's useful life on a straight line or declining balance basis, which most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. An asset's useful life is determined as the lower of its physical life and economic life. Depreciation commences once an asset is available for use. Depreciation methods, useful lives and residual values are reviewed annually and adjusted if appropriate. |
Intangible Assets | Intangible Assets i) Goodwill Goodwill that arises upon acquisitions is included in intangible assets and goodwill. See Note 4(a)(i) for the policy on measurement of goodwill at initial recognition. Subsequent Measurement Goodwill is measured at cost less accumulated impairment losses. In respect of investments in equity accounted investees, goodwill is included in the carrying amount of the investment, and an impairment loss on such an investment is allocated to the investment and not to any asset, including goodwill, that forms the carrying amount of the investment in equity accounted investee. ii) Other Intangible Assets Other intangible assets acquired individually by Pembina are initially recognized and measured at cost, unless they are acquired as part of a business combination in which case they are initially measured at fair value. Thereafter, intangible assets with finite useful lives are recorded net of accumulated amortization and accumulated impairment losses. iii) Subsequent Expenditures Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures are recognized in earnings as incurred. iv) Amortization Amortization is based on the cost of an asset less its residual value. Amortization is recognized in earnings over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. Amortization methods, useful lives and residual values are reviewed annually and adjusted if appropriate. |
Leases | Leases Accounting policies related to leases are disclosed in Note 3 Changes in Accounting Policies. |
Impairment | Impairment i) Non-Derivative Financial Assets Impairment of financial assets carried at amortized cost is assessed using the lifetime expected credit loss of the financial asset at initial recognition and throughout the life of the financial asset, except where credit risk has not increased significantly since initial recognition, in which case impairment is assessed at the 12 month expected credit loss of the financial asset at the reporting date. In determining the impairment loss allowance for trade receivables, Pembina uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management's judgment as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. Impairment losses are recognized in earnings and reflected as a reduction in the related financial asset. ii) Non-Financial Assets The carrying amounts of Pembina's non-financial assets, other than: inventory, assets arising from employee benefits and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. For goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, the recoverable amount is estimated annually in connection with the annual goodwill impairment test. An impairment loss is recognized if the carrying amount of an asset or its related CGU exceeds its estimated recoverable amount. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing the recoverable amount, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset, CGU or group of CGUs. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into CGUs, the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets. CGUs may incorporate integrated assets from multiple operating segments. For the purpose of goodwill impairment testing, CGUs are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal purposes. Goodwill acquired in a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination. Pembina's corporate assets do not generate separate cash inflows and are utilized by more than one CGU. Corporate assets are allocated to CGUs on a reasonable and consistent basis and tested for impairment as part of the testing of the CGU to which the corporate asset is allocated. If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset has been allocated. Impairment losses are recognized in earnings. Impairment losses recognized in respect of a CGU (group of CGUs) are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Goodwill that forms part of the carrying amount of an investment in an equity accounted investee is not recognized separately, and therefore is not tested for impairment separately. Instead, the entire amount of the investment is tested for impairment as a single asset when there is objective evidence that the equity accounted investee may be impaired, unless the equity accounted investee does not generate cash flows that are largely independent of those from other assets of the entity in which case it is combined in a CGU with the related assets. |
Employee Benefits | Employee Benefits i) Defined Contribution Plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in earnings in the periods during which services are rendered by employees. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available. Contributions to a defined contribution plan due more than 12 months after the end of the period in which the employees render the service are discounted to their present value. ii) Defined Benefit Pension Plans A defined benefit pension plan is a post-employment benefit plan other than a defined contribution plan. Pembina's net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods, discounted to determine its present value, less the fair value of any plan assets. The discount rate used to determine the present value is established by referencing market yields on high-quality corporate bonds on the measurement date with cash flows that match the timing and amount of expected benefits. The calculation is performed, at a minimum, every three years by a qualified actuary using the actuarial cost method. When the calculation results in a benefit to Pembina, the recognized asset is limited to the present value of economic benefits available in the form of future expenses payable from the plan, any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any minimum funding requirements that apply to any plan in Pembina. An economic benefit is available to Pembina if it is realizable during the life of the plan or on settlement of the plan liabilities. When the benefits of a plan are improved, the portion of the increased benefit relating to past service by employees is recognized in earnings immediately. Pembina recognizes all actuarial gains and losses arising from defined benefit plans in other comprehensive income and expenses related to defined benefit plans in earnings. Pembina recognizes gains or losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. The gain or loss on curtailment comprises any resulting change in the fair value of plan assets, change in the present value of defined benefit obligation and any related actuarial gains or losses and past service cost that had not previously been recognized. iii) Short-Term Employee Benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if Pembina has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. iv) Share-Based Payment Transactions For equity settled share-based payment plans, the fair value of the share-based payment at grant date is recognized as an expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service conditions at the vesting date. For cash settled share-based payment plans, the fair value of the amount payable to employees is recognized as an expense with a corresponding increase in liabilities, over the period that the employees unconditionally become entitled to payment. The liability is remeasured at each reporting date and at settlement date. Any changes in the fair value of the liability are recognized as an expense in earnings. |
Provisions | Provisions A provision is recognized if, as a result of a past event, Pembina has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Provisions are remeasured at each reporting date based on the best estimate of the settlement amount. The unwinding of the discount rate is recognized as accretion in finance costs. |
Decommissioning Provision | Decommissioning Provision Pembina's activities give rise to certain dismantling, decommissioning, environmental reclamation and remediation obligations at the end of an asset's economic life. A provision is made for the estimated cost of site restoration and capitalized in the relevant asset category. Decommissioning obligations are measured at the present value, based on a risk-free rate, of management's best estimate of what is reasonably expected to be incurred to settle the obligation at the end of an asset's economic life. Subsequent to the initial measurement, the obligation is adjusted at the end of each period to reflect the passage of time, changes in the risk-free rate and changes in the estimated future cash flows underlying the obligation. The increase in the provision due to the passage of time is recognized as accretion in finance costs whereas increases or decreases due to changes in the estimated future cash flows or risk-free rate are added to or deducted from the cost of the related asset. Decommissioning obligations assumed in a business combination are initially recorded at fair value and remeasured using a risk-free rate subsequent to acquisition. This remeasurement is added to or deducted from the cost of the related asset. |
Revenue | Revenue i) Take-or-Pay Pembina provides transportation, gas processing, fractionation, terminalling, and storage services under take-or-pay contracts. In a take-or-pay contract, Pembina is entitled to a minimum fee for the firm service promised to a customer over the contract period, regardless of actual volumes transported, processed, terminalled, or stored. This minimum fee can be represented as a set fee for an annual minimum volume, or an annual minimum revenue requirement. In addition, these contracts may include variable consideration for operating costs that are flow through to the customer. Pembina satisfies its performance obligations and recognizes revenue for services under take-or-pay commitments when volumes are transported, processed, terminalled, or stored. Make-up rights may arise when a customer does not fulfill their minimum volume commitment in a certain period, but is allowed to use the delivery of future volumes to meet this commitment. These make-up rights are subject to expiry and have varying conditions associated with them. When contract terms allow a customer to exercise their make-up rights using firm volume commitments, revenue is not recognized until these make-up rights are used, expire, or management determines that it is remote that they will be utilized. If Pembina bills a customer for unused service in an earlier period and the customer utilizes available make-up rights, Pembina records a refund liability for the amount to be returned to the customer through an annual adjustment process. For contracts where no make-up rights exist, revenue is recognized to take-or-pay levels once Pembina has an enforceable right to payment for the take-or-pay volumes. Make-up rights generally expire within a contract year, and the majority of the related contract years follow the calendar year. When customers are transporting, processing, terminalling, or storing volumes below their take-or-pay commitments early in a contract year, and the customer has the right to exercise make up rights against future firm volume commitments, there will be a change to the timing of revenue recognition. Where Pembina has a right to invoice to take-or-pay levels throughout the contract year, revenue is deferred and a contract liability is recorded for the volumes invoiced that were not utilized by the customer. Once the customer has used its make-up rights or it is determined to be remote that a customer will use them, the previously deferred revenue is recognized. In these instances, there will be a deferral of revenue in early quarters of the year, with subsequent recognition occurring in later quarters although there is no impact on cash flows. For certain arrangements where the customer does not have make-up rights, where the make-up rights have been determined to be insignificant, and for cost of service agreements, revenue is recognized using the practical expedient to recognize revenue in an amount equal to Pembina's right to invoice. For these arrangements, the consideration Pembina is entitled to invoice in each period is representative of the value provided to the customer. When up-front payments or non-cash consideration is received in exchange for future services to be performed, revenue is deferred as a contract liability and recognized over the period the performance obligation is expected to be satisfied. Non-cash consideration is measured at the fair value of the non-cash consideration received. ii) Fee-for-Service Fee-for-service revenue includes firm contracted revenue that is not subject to take-or-pay commitments and interruptible revenue. Pembina satisfies its performance obligations for transportation, gas processing, fractionation, terminalling, and storage as volumes of product are transported, processed, or stored. Revenue is based on a contracted fee and consideration is variable with respect to volumes. Payment is due in the month following Pembina's provision of service. iii) Product Sales Pembina satisfies its performance obligation on product sales at the time legal title to the product is transferred to the customer. Certain commodity buy/sell arrangements where control of the product has not transferred to Pembina are recognized on a net basis in revenue. For product sales, revenue is recognized using the practical expedient to recognize revenue in an amount equal to Pembina's right to invoice as the consideration Pembina is entitled to invoice in each period is representative of the value provided to the customer. |
Finance Income and Finance Costs | Finance Income and Finance Costs Finance income comprises interest income on funds deposited and invested, finance lease receivables, gains on non-commodity-related derivatives measured at fair value through earnings and foreign exchange gains. Interest income is recognized as it accrues in earnings, using the effective interest rate method. Finance costs comprise interest expense on loans and borrowings and lease liabilities, accretion on provisions, losses on disposal of available for sale financial assets, losses on non-commodity-related derivatives, impairment losses recognized on financial assets (other than trade and other receivables) and foreign exchange losses. Borrowing costs that are not directly attributable to the acquisition or construction of a qualifying asset are recognized in earnings using the effective interest rate method. |
Income Tax | Income Tax Income tax expense comprises current and deferred tax. Current and deferred taxes are recognized in earnings except to the extent that they relate to a business combination, or items are recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for: • temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable earnings; • temporary differences relating to investments in subsidiaries and joint arrangements to the extent that it is probable that they will not reverse in the foreseeable future; and • taxable temporary differences arising on the initial recognition of goodwill. The measurement of deferred tax reflects the tax consequences that would follow the manner in which Pembina expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. In determining the amount of current and deferred tax, Pembina takes into account income tax exposures and whether additional taxes and interest may be due. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes Pembina to change its judgment regarding the adequacy of existing tax liabilities, such changes to tax liabilities will impact tax expense in the period that such a determination is made. |
Earnings Per Common Share | Earnings Per Common Share Pembina presents basic and diluted earnings per common share ("EPS") data for its common shares. Basic EPS is calculated by dividing the earnings attributable to common shareholders of Pembina by the weighted average number of common shares outstanding during the period. To calculate earnings attributable to common shareholders, earnings are adjusted for accumulated preferred dividends. Diluted EPS is determined by adjusting the earnings attributable to common shareholders and the weighted average number of common shares outstanding, for the effects of all potentially dilutive common shares, which comprise share options granted to employees. Only outstanding share options that will have a dilutive effect are included in fully diluted calculations. The dilutive effect of share options is determined whereby outstanding share options at the end of the period are assumed to have been converted at the beginning of the period or at the time issued if issued during the year. Amounts charged to earnings relating to the outstanding share options are added back to earnings for the diluted calculations. The shares issued upon conversion are included in the denominator of per share basic calculations for the date of issue. |
Segment Reporting | Segment Reporting An operating segment is a component of Pembina that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company's other components. All operating segments' operating results are reviewed regularly by Pembina's Chief Executive Officer ("CEO"), Chief Financial Officer ("CFO") and other Senior Vice Presidents ("SVPs") to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. Segment results that are reported to the CEO, CFO and other SVPs include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. |
New Standards and Interpretations Not Yet Adopted | New Standards and Interpretations Not Yet Adopted A number of new standards are effective for annual periods beginning after January 1, 2020 and earlier application is permitted; however, Pembina has not early adopted the new or amended standards in preparing Pembina's consolidated financial statements. The following amended standards and interpretations are not expected to have a significant impact on Pembina's consolidated financial statements, on adoption January 1, 2020. • Amendments to References to Conceptual Framework in IFRS Standards. • Definition of a Business (Amendments to IFRS 3). • Definition of Material (Amendments to IAS 1 and IAS 8). |
Determination of Fair Values | DETERMINATION OF FAIR VALUES A number of Pembina's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. i) Property, Plant and Equipment The fair value of property, plant and equipment recognized as a result of a business combination or transferred from a customer is based on market values when available, income approach and depreciated replacement cost when appropriate. Depreciated replacement cost reflects adjustments for physical deterioration as well as functional and economic obsolescence. ii) Intangible Assets The fair value of intangible assets acquired in a business combination is determined by an active market value or using the multi-period excess earnings method, whereby the subject asset is valued after deducting a fair return on all other assets that are part of creating the related cash flows. The fair value of other intangible assets is based on the discounted cash flows expected to be derived from the use and eventual sale of the assets. iii) Derivatives Fair value of derivatives are estimated by reference to independent monthly forward prices, interest rate yield curves, and currency rates at the reporting dates. Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the company, entity and counterparty when appropriate. iv) Non-Derivative Financial Assets and Liabilities The fair value of non-derivative financial assets and liabilities is determined on initial recognition, on a recurring basis, or for disclosure purposes. Fair values of financial assets at amortized cost are calculated based on the present value of estimated future principal and interest cash flows, discounted at the market rate of interest at the reporting date. Fair values of financial assets held at fair value are calculated using a probability-weighted income approach based on current market expectations for future cash flows. For other financial liabilities where market rates are not readily available, a risk adjusted market rate is used which incorporates the nature of the instrument as well as the risk associated with the underlying cash payments. v) Decommissioning Provision The fair value of decommissioning obligations assumed as part of a business combination are measured as the present value of management's best estimate of what is reasonably expected to be incurred to settle the obligation at the end of an asset's economic life. The obligation is discounted using a risk adjusted rate corresponding to the underlying assets to which the obligation relates. vi) Share-Based Compensation Transactions The fair value of employee share options is measured using the Black-Scholes formula on grant date. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility adjusted for changes expected due to publicly available information), weighted average expected life of the instruments (based on historical experience and general option holder behaviour), expected dividends, expected forfeitures and the risk-free interest rate (based on government bonds). Service and non-market performance conditions attached to the transactions are not taken into account in determining fair value. The fair value of the long-term share unit award incentive plan and associated distribution units are measured based on the volume-weighted average price for 20 days ending at the reporting date of Pembina's shares. |
CHANGES IN ACCOUNTING POLICIES
CHANGES IN ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Disclosure of initial application of standards or interpretations | The impacts of adoption of IFRS 16 as at January 1, 2019 are as follows : As at December 31, 2018 Adjustments Opening Value January 1, 2019 ($ millions) Assets Current assets Trade receivables and other (1) 604 1 605 Non-current assets Property, plant and equipment (2) 14,730 (18 ) 14,712 Right-of-use assets (3) — 427 427 Advances to related parties and other assets (1)(4) 144 33 177 Liabilities and Equity Current liabilities Trade payables and other (4) 870 (7 ) 863 Loans and borrowings (5) 480 (8 ) 472 Lease liabilities — 64 64 Non-current liabilities Loans and borrowings (5) 7,057 (11 ) 7,046 Lease liabilities — 416 416 Deferred tax liabilities 2,774 8 2,782 Other liabilities (4) 239 (41 ) 198 Equity Attributable to shareholders 14,344 22 14,366 (1) Includes lessor finance lease receivables. (2) Finance lease assets previously recorded in property, plant and equipment were reclassified to right-of-use assets. (3) Right-of-use assets are recorded at a value equal to the associated lease liability of $480 million , less $33 million for sublease arrangements, less onerous lease liability balance at December 31, 2018 of $20 million . (4) Operating lease payments were previously recognized on a straight-line basis, with the difference between cash payments and expense (income) recorded to a deferred lease asset or deferred lease liability. These deferrals were derecognized on adoption of IFRS 16. In addition, $20 million of onerous lease liabilities were offset against right-of-use assets. (5) Finance leases previously recorded in loans and borrowings were reclassified to lease liabilities. |
Reconciliation of lease liability | ($ millions) Lease commitments, disclosed at December 31, 2018 796 Leases not yet commenced (33 ) Non-lease components (217 ) Renewal options reasonably certain to be exercised 53 Total undiscounted lease payments 599 Discounting impact (1) (119 ) Lease liabilities recognized as at January 1, 2019 480 (1) Pembina discounted lease payments using the incremental credit-risk adjusted borrowing rate applicable to the contract. The weighted-average rate applied on transition for all lease liabilities was |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations1 [Abstract] | |
Disclosure of detailed information about business combinations | The purchase price equation, subject to finalization, is based on assessed fair values and is as follows: ($ millions) December 16, 2019 Purchase Price Consideration Common shares 1,710 Cash (net of cash acquired) 2,009 Preferred shares 536 4,255 Current assets 68 Property, plant and equipment 2,660 Intangible assets 1,254 Right-of-use assets 348 Goodwill 809 Other assets 9 Current liabilities (124 ) Deferred tax liabilities (281 ) Decommissioning provision (74 ) Lease liability (348 ) Other liabilities (66 ) 4,255 |
TRADE RECEIVABLES AND OTHER (Ta
TRADE RECEIVABLES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of trade receivables and other | As at December 31 ($ millions) 2019 2018 Trade receivables from customers 575 501 Other receivables 92 88 Prepayments 25 16 Impairment loss allowance — (1 ) Total trade receivables and other 692 604 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | ($ millions) Land and Land Rights Pipelines Facilities and Equipment Cavern Storage and Other Assets Under Construction Total Cost Balance at December 31, 2017 329 6,650 6,715 1,223 659 15,576 Additions and transfers 12 531 469 231 291 1,534 Change in decommissioning provision — (10 ) 5 19 — 14 Disposals and other (1 ) (7 ) (30 ) 5 (11 ) (44 ) Balance at December 31, 2018 340 7,164 7,159 1,478 939 17,080 Reclassification on adoption of IFRS 16 (Note 3) — — — (44 ) — (44 ) Additions and transfers 32 215 691 203 534 1,675 Acquisition (Note 6) 86 1,434 798 314 28 2,660 Change in decommissioning provision — 10 143 5 — 158 Foreign exchange adjustments (2 ) (17 ) (4 ) — (11 ) (34 ) Disposals and other — (3 ) (31 ) (12 ) 3 (43 ) Balance at December 31, 2019 456 8,803 8,756 1,944 1,493 21,452 Depreciation Balance at December 31, 2017 9 1,096 721 204 — 2,030 Depreciation 3 142 164 55 — 364 Disposals and other — (17 ) (18 ) (9 ) — (44 ) Balance at December 31, 2018 12 1,221 867 250 — 2,350 Reclassification on adoption of IFRS 16 (Note 3) — — — (26 ) — (26 ) Depreciation 4 155 174 59 — 392 Disposals and other — (13 ) (26 ) — — (39 ) Balance at December 31, 2019 16 1,363 1,015 283 — 2,677 Carrying amounts Balance at December 31, 2018 328 5,943 6,292 1,228 939 14,730 Balance at December 31, 2019 440 7,440 7,741 1,661 1,493 18,775 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Disclosure of reconciliation of changes in intangible assets and goodwill | Intangible Assets ($ millions) Goodwill Purchase and Sale Contracts and Other Customer Relationships Purchase Option Total Total Goodwill & Intangible Assets Cost Balance at December 31, 2017 3,871 216 638 277 1,131 5,002 Additions and other 7 11 1 — 12 19 Transfers — — — (277 ) (277 ) (277 ) Balance at December 31, 2018 3,878 227 639 — 866 4,744 Additions and other — 13 — — 13 13 Acquisition (Note 6) 809 — 1,254 — 1,254 2,063 Foreign exchange adjustments (3 ) — (12 ) — (12 ) (15 ) Balance at December 31, 2019 4,684 240 1,881 — 2,121 6,805 Amortization Balance at December 31, 2017 — 145 143 — 288 288 Amortization — 19 28 — 47 47 Balance at December 31, 2018 — 164 171 — 335 335 Amortization — 10 31 — 41 41 Balance at December 31, 2019 — 174 202 — 376 376 Carrying amounts Balance at December 31, 2018 3,878 63 468 — 531 4,409 Balance at December 31, 2019 4,684 66 1,679 — 1,745 6,429 |
Disclosure of goodwill and intangible assets by segment | The aggregate carrying amount of intangible assets and goodwill allocated to each operating segment is as follows: As at December 31 ($ millions) 2019 2018 Goodwill Intangible Assets Total Goodwill Intangible Assets Total Pipelines 2,703 1,505 4,208 1,897 278 2,175 Facilities 541 97 638 541 102 643 Marketing & New Ventures 1,440 112 1,552 1,440 131 1,571 Corporate — 31 31 — 20 20 4,684 1,745 6,429 3,878 531 4,409 For the year ended December 31, 2019 Pipelines Facilities Marketing & New Ventures Corporate & Inter-Division Eliminations Total ($ millions) Revenue from external customers 1,650 776 4,804 — 7,230 Inter-division revenue 137 345 — (482 ) — Total revenue (1)(2) 1,787 1,121 4,804 (482 ) 7,230 Operating expenses 436 344 — (178 ) 602 Cost of goods sold, including product purchases — 4 4,417 (311 ) 4,110 Realized gain on commodity-related derivative financial instruments — — (33 ) — (33 ) Share of profit from equity accounted investees 270 50 50 — 370 Depreciation and amortization included in operations 245 168 51 11 475 Unrealized loss on commodity-related derivative financial instruments — — 13 — 13 Gross profit 1,376 655 406 (4 ) 2,433 Depreciation included in general and administrative — — — 36 36 Other general and administrative 30 14 35 181 260 Other expense 3 — 3 9 15 Impairment of investment in equity accounted investees 300 — — — 300 Reportable segment results from operating activities 1,043 641 368 (230 ) 1,822 Net finance costs (income) 9 23 (8 ) 270 294 Reportable segment earnings (loss) before tax 1,034 618 376 (500 ) 1,528 Capital expenditures 892 569 157 27 1,645 Contributions to equity accounted investees 13 73 177 — 263 For the year ended December 31, 2018 Pipelines Facilities (3) Marketing & New Ventures (3) Corporate & Inter-Division Eliminations Total ($ millions) Revenue from external customers 1,464 712 5,175 — 7,351 Inter-division revenue 124 302 — (426 ) — Total revenue (1)(2) 1,588 1,014 5,175 (426 ) 7,351 Operating expenses 396 313 — (158 ) 551 Cost of goods sold, including product purchases — 8 4,789 (282 ) 4,515 Realized loss on commodity-related derivative financial instruments — — 51 — 51 Share of profit from equity accounted investees 279 30 102 — 411 Depreciation and amortization included in operations 216 149 26 — 391 Unrealized gain on commodity-related derivative financial instruments — — (73 ) — (73 ) Gross profit 1,255 574 484 14 2,327 Depreciation included in general and administrative — — — 26 26 Other general and administrative 26 17 41 169 253 Other expense — 5 12 10 27 Reportable segment results from operating activities 1,229 552 431 (191 ) 2,021 Net finance costs 9 6 16 248 279 Reportable segment earnings (loss) before tax 1,220 546 415 (439 ) 1,742 Capital expenditures 711 348 134 33 1,226 Contributions to equity accounted investees — 56 2 — 58 (1) Total revenue includes $215 million ( 2018 : $265 million ) associated with U.S. revenues. (2) During both periods, one customer accounted for 10 percent or more of total revenues, with $718 million ( 2018 : $792 million ) reported throughout all segments. (3) Revenue and cost of goods sold reported for all 2018 periods have been recast to reflect updated presentation for 2019, where the majority of cost of goods sold and corresponding revenues are reported in Marketing & New Ventures. |
Disclosure of key assumptions used in goodwill impairment | For each operating segment, key assumptions and discount rate sensitivity are presented below: Operating Segments 2019 Pipelines Facilities Marketing & New Ventures (Percent) Pre-tax discount rate 6.80 6.48 10.57 Adjusted inflation rate 1.16 1.62 1.80 Incremental increase in discount rate that would result in carrying value equal to recoverable amount Increase in pre-tax discount rate 4.14 4.85 7.65 |
INVESTMENTS IN EQUITY ACCOUNT_2
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Interests In Other Entities [Abstract] | |
Disclosure of interests in joint ventures | Ownership Interest at December 31 Share of Profit (Loss) from Equity Investments Investment in Equity Accounted Investees at December 31 12 Months Ended December 31 ($ millions) 2019 2018 2019 2018 2019 2018 Alliance 50 % 50 % 149 160 2,620 2,799 Aux Sable 42.7% - 50% 42.7% - 50% 51 102 426 480 Ruby (1) - - 120 118 1,273 1,648 Veresen Midstream 45 % 45.3 % 48 26 1,348 1,324 CKPC 50 % 50 % (1 ) — 171 — Other 50% - 75% 50% - 75% 3 5 116 117 370 411 5,954 6,368 (1) Pembina owns a 50 percent convertible preferred interest in Ruby. Summarized combined financial information of equity accounted investees (presented at 100 percent) is as follows: For the years ended December 31 ($ millions) 2019 2018 Net Income and Comprehensive Income Revenue 3,114 3,605 Cost of sales (1,178 ) (1,566 ) General and administrative expense (204 ) (171 ) Depreciation and amortization (486 ) (511 ) Finance costs and other (286 ) (308 ) Net Income and Comprehensive Income 960 1,049 Net income and Comprehensive Income attributable to Pembina 370 411 As at December 31 ($ millions) 2019 2018 Balance Sheet Current assets 797 838 Non-current assets 11,379 11,667 Current liabilities 802 908 Non-current liabilities 4,985 5,262 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Disclosure of movement in components of deferred tax assets and liabilities | The movements of the components of the deferred tax assets and deferred tax liabilities are as follows: ($ millions) Balance at December 31, 2018 Recognized in Earnings Recognized in Other Comprehensive Income Acquisition Equity Other Balance at December 31, 2019 Deferred income tax assets Derivative financial instruments (18 ) 5 — — — — (13 ) Employee benefits 9 (1 ) 1 — — — 9 Share-based payments 26 (2 ) — — — — 24 Provisions 156 29 — 20 — — 205 Benefit of loss carryforwards 153 256 — 13 — (22 ) 400 Other deductible temporary differences 68 (39 ) — 2 (3 ) — 28 Deferred income tax liabilities Property, plant and equipment 1,660 301 — 136 — 8 2,105 Intangible assets 118 (14 ) — 180 — — 284 Investments in equity accounted investees 1,262 (155 ) — — — — 1,107 Taxable limited partnership income deferral 122 (46 ) — — — — 76 Other taxable temporary differences 6 (12 ) — — — (7 ) (13 ) Total deferred tax liabilities 2,774 (174 ) (1 ) 281 3 23 2,906 ($ millions) Balance at December 31, 2017 Recognized in Earnings Recognized in Other Comprehensive Income Acquisition Equity Other Balance at December 31, 2018 Deferred income tax assets Derivative financial instruments 11 (29 ) — — — — (18 ) Employee benefits 7 — 2 — — — 9 Share-based payments 21 5 — — — — 26 Provisions 153 3 — — — — 156 Benefit of loss carryforwards 180 (33 ) — (7 ) — 13 153 Other deductible temporary differences 56 16 — — (4 ) — 68 Deferred income tax liabilities Property, plant and equipment 1,361 299 — — — — 1,660 Intangible assets 198 (80 ) — — — — 118 Investments in equity accounted investees 1,173 89 — — — — 1,262 Taxable limited partnership income deferral 56 66 — — — — 122 Other taxable temporary differences 16 (18 ) — — — 8 6 Total deferred tax liabilities 2,376 394 (2 ) 7 4 (5 ) 2,774 |
Disclosure of reconciliation of effective tax rate | Pembina's consolidated statutory tax rate for the year ended December 31, 2019 was 26.7 percent ( 2018 : 27.0 percent). Reconciliation of Effective Tax Rate For the years ended December 31 ($ millions, except as noted) 2019 2018 Earnings before income tax 1,528 1,742 Statutory tax rate 26.7 % 27.0 % Income tax at statutory rate 408 470 Tax rate changes and foreign rate differential (359 ) (16 ) Changes in estimate and other (16 ) 9 Permanent items 3 1 Income tax expense 36 464 |
Disclosure of income tax expense | Income Tax Expense For the years ended December 31 ($ millions) 2019 2018 Current tax expense 210 70 Deferred tax expense Origination and reversal of temporary differences 393 368 Tax rate changes on deferred tax balances (345 ) (1 ) (Increase) decrease in tax loss carry forward (222 ) 27 Total deferred tax (recovery) expense (174 ) 394 Total income tax expense 36 464 |
Disclosure of deferred tax items recovered directly in equity | Deferred Tax Items Recovered Directly in Equity For the years ended December 31 ($ millions) 2019 2018 Share issue costs (3 ) (4 ) Other comprehensive income (loss) 1 2 Deferred tax items recovered directly in equity (2 ) (2 ) |
TRADE PAYABLES AND OTHER (Table
TRADE PAYABLES AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of trade payables and accrued liabilities | As at December 31 ($ millions) 2019 2018 Trade payables 717 519 Other payables & accrued liabilities 296 284 Total trade payables and other 1,013 803 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of leases [Abstract] | |
Disclosure of quantitative information about right-of-use assets | ($ millions) Terminals Rail Buildings Land & Other Total Balance at January 1, 2019 (Note 3) — 221 127 79 427 Additions — 54 1 58 113 Acquisition (Note 6) 317 — 7 24 348 Amortization — (37 ) (17 ) (12 ) (66 ) Balance at December 31, 2019 317 238 118 149 822 |
Disclosure of maturity analysis of finance lease payments receivable | As at December 31, 2019 Operating Leases (1) Finance Leases ($ millions) Less than one year 90 6 One to two years 89 7 Two to three years 89 6 Three to four years 89 4 Four to five years 89 4 More than five years 910 12 Total undiscounted lease payments 1,356 39 Unearned finance income (4 ) Finance lease receivable 35 (1) Excludes the total undiscounted lessor operating lease payments of $175 million related to assets acquired as part of the Kinder Acquisition as noted above |
Disclosure of maturity analysis of operating lease payments | As at December 31, 2019 Operating Leases (1) Finance Leases ($ millions) Less than one year 90 6 One to two years 89 7 Two to three years 89 6 Three to four years 89 4 Four to five years 89 4 More than five years 910 12 Total undiscounted lease payments 1,356 39 Unearned finance income (4 ) Finance lease receivable 35 (1) Excludes the total undiscounted lessor operating lease payments of $175 million related to assets acquired as part of the Kinder Acquisition as noted above |
LOANS AND BORROWINGS (Tables)
LOANS AND BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about borrowings | Carrying Value, Terms and Conditions, and Debt Maturity Schedule Carrying Value ($ millions) Authorized at December 31, 2019 Nominal interest Rate Year of Maturity December 31, 2019 December 31, 2018 Senior unsecured credit facilities (1)(4) 3,020 3.25 (2) Various (1) 2,097 1,305 Senior unsecured notes – series A 73 5.57 2020 74 76 Senior unsecured notes – series C 200 5.58 2021 199 199 Senior unsecured notes – series D — 5.91 2019 — 267 Senior unsecured medium-term notes series 1 250 4.89 2021 250 250 Senior unsecured medium-term notes series 2 450 3.77 2022 449 449 Senior unsecured medium-term notes series 3 450 4.75 2043 446 446 Senior unsecured medium-term notes series 4 600 4.81 2044 596 596 Senior unsecured medium-term notes series 5 450 3.54 2025 449 448 Senior unsecured medium-term notes series 6 500 4.24 2027 498 498 Senior unsecured medium-term notes series 7 500 3.71 2026 498 498 Senior unsecured medium-term notes series 8 650 2.99 2024 646 646 Senior unsecured medium-term notes series 9 550 4.74 2047 542 541 Senior unsecured medium-term notes series 10 400 4.02 2028 398 398 Senior unsecured medium-term notes series 11 300 4.75 2048 298 298 Senior unsecured medium-term notes series 12 400 3.62 2029 398 — Senior unsecured medium-term notes series 13 700 4.54 2049 714 — Senior unsecured medium-term notes series 14 600 2.56 2023 598 — Senior unsecured medium-term notes series 15 600 3.31 2030 597 — Senior unsecured medium-term notes 3A 50 5.05 2022 52 50 Senior unsecured medium-term notes 4A — 3.06 2019 — 205 Senior unsecured medium-term notes 5A 350 3.43 2021 353 353 Finance lease liabilities and other (3) — — 14 Total interest bearing liabilities 10,152 7,537 Less current portion (74 ) (480 ) Total non-current 10,078 7,057 (1) Pembina's unsecured credit facilities include a $2.5 billion revolving facility that matures May 2024, a $500 million non-revolving term loan that matures August 2022 and a $20 million operating facility that matures May 2020, which is typically renewed on an annual basis. (2) The nominal interest rate is the weighted average of all drawn credit facilities based on Pembina's credit rating at December 31, 2019 . Borrowings under the credit facilities bear interest at prime, Bankers' Acceptance, or LIBOR rates, plus applicable margins. (3) On adoption of IFRS 16 on January 1, 2019, finance leases previously reported in loans and borrowings were reclassified to lease liabilities. See Note 3. (4) At December 31, 2019 , US$454 million was drawn on the $2.5 billion revolving credit facility ( 2018 : $ nil ). |
DECOMISSIONING PROVISION (Table
DECOMISSIONING PROVISION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of decommissioning provisions | ($ millions) 2019 2018 Balance at January 1 573 551 Unwinding of discount rate 14 12 Change in rates 191 — Acquisition (Note 6) 74 — Additions 28 18 Change in cost estimates and other (13 ) (8 ) Total 867 573 Less current portion (included in accrued liabilities) (3 ) (4 ) Balance at December 31 864 569 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Disclosure of classes of share capital | Common Share Capital ($ millions, except as noted) Number of Common Shares (millions) Common Share Capital Balance at December 31, 2017 503 13,447 Debenture conversions 3 140 Share-based payment transactions 2 75 Balance at December 31, 2018 508 13,662 Issued on Acquisition, net of issue costs (Note 6) 36 1,710 Share-based payment transactions 4 167 Balance at December 31, 2019 548 15,539 Preferred Share Capital ($ millions, except as noted) Number of Preferred Shares (millions) Preferred Share Capital Balance at December 31, 2017 100 2,424 Part VI.1 tax — (1 ) Balance at December 31, 2018 100 2,423 Class A, Series 23 Preferred shares issued on Acquisition, net of issue costs (Note 6) 12 293 Class A, Series 25 Preferred shares issued on Acquisition, net of issue costs (Note 6) 10 243 Part VI.1 tax — (3 ) Balance at December 31, 2019 122 2,956 |
Disclosure of dividends | The following dividends were declared by Pembina: For the years ended December 31 ($ millions) 2019 2018 Common shares Common shares $2.36 per qualifying share (2018: $2.24) 1,213 1,131 Preferred shares $1.23 per Series 1 preferred share (2018: $1.06) 12 11 $1.13 per Series 3 preferred share (2018: $1.18) 7 7 $1.19 per Series 5 preferred share (2018: $1.25) 12 12 $1.12 per Series 7 preferred share (2018: $1.13) 11 11 $1.19 per Series 9 preferred share (2018: $1.19) 11 11 $1.44 per Series 11 preferred share (2018: $1.44) 10 10 $1.44 per Series 13 preferred share (2018: $1.44) 14 14 $1.12 per Series 15 preferred share (2018: $1.12) 9 9 $1.22 per Series 17 preferred share (2018: $1.25) 7 8 $1.25 per Series 19 preferred share (2018: $1.25) 10 10 $1.23 per Series 21 preferred share (2018: $1.20) 20 19 $0.16 per Series 23 preferred share (2018: nil) 2 — $0.16 per Series 25 preferred share (2018: nil) 1 — 126 122 Pembina's Board of Directors also declared quarterly dividends for Pembina's preferred shares as outlined in the following table: Series Record Date Payable Date Per Share Amount Dividend Amount ($ millions) Series 1 February 3, 2020 March 2, 2020 $0.306625 3 Series 3 February 3, 2020 March 2, 2020 $0.279875 2 Series 5 February 3, 2020 March 2, 2020 $0.285813 3 Series 7 February 3, 2020 March 2, 2020 $0.273750 3 Series 9 February 3, 2020 March 2, 2020 $0.296875 3 Series 11 February 3, 2020 March 2, 2020 $0.359375 2 Series 13 February 3, 2020 March 2, 2020 $0.359375 4 Series 15 March 16, 2020 March 31, 2020 $0.279000 2 Series 17 March 16, 2020 March 31, 2020 $0.301313 2 Series 19 March 16, 2020 March 31, 2020 $0.312500 3 Series 21 February 3, 2020 March 2, 2020 $0.306250 5 Series 23 January 31, 2020 February 18, 2020 $0.328125 4 Series 25 January 31, 2020 February 18, 2020 $0.325000 3 |
PERSONNEL EXPENSES (Tables)
PERSONNEL EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Disclosure of personnel expenses | For the years ended December 31 ($ millions) 2019 2018 Salaries and wages 304 254 Share-based compensation expense (Note 23) 66 63 Short-term incentive plan 64 59 Pension plan expense 25 23 Health, savings plan and other benefits 30 21 489 420 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contracts With Customers [Abstract] | |
Disclosure of disaggregation of revenue from contracts with customers | 2019 2018 For the years ended December 31 Pipelines Facilities Marketing & New Ventures Total Pipelines Facilities Marketing & New Ventures Total ($ millions) Take-or-pay (1) 1,200 625 — 1,825 979 582 — 1,561 Fee-for-service (1) 387 117 — 504 424 103 — 527 Product sales (2)(3) — 5 4,804 4,809 — 10 5,175 5,185 Revenue from contracts with customers 1,587 747 4,804 7,138 1,403 695 5,175 7,273 Lease and other revenue (4) 63 29 — 92 61 17 — 78 Total external revenue 1,650 776 4,804 7,230 1,464 712 5,175 7,351 (1) Revenue recognized over time. (2) Revenue recognized at a point in time. (3) Revenue reported for 2018 periods have been recast to reflect updated presentation for 2019, where product sales are reported in Marketing & New Ventures. (4) Includes fixed operating lease income of $ 92 million ( 2018 : $78 ) for the 12 months ended December 31, 2019 . |
Disclosure of significant changes in contract assets and contract liabilities | Significant changes in the contract liabilities balances during the period are as follows: 2019 2018 For the years ended December 31 ($ millions) Take-or-Pay Other Contract Liabilities Total Contract Liabilities Take-or-Pay Other Contract Liabilities Total Contract Liabilities Opening balance 9 159 168 8 149 157 Additions (net in the period) 4 35 39 5 33 38 Acquisition (Note 6) — 77 77 — — — Revenue recognized from contract liabilities (1) (5 ) (48 ) (53 ) (4 ) (23 ) (27 ) Closing balance 8 223 231 9 159 168 Less current portion (2) (8 ) (31 ) (39 ) (9 ) (28 ) (37 ) Ending balance — 192 192 — 131 131 (1) Recognition of revenue related to performance obligations satisfied in the current period that were included in the opening balance of contract liabilities. (2) As at December 31, 2019 , the balance includes $8 million of cash collected under take-or-pay contracts which will be recognized within one year as the customer chooses to ship, process, or otherwise forego the associated service. |
NET FINANCE COSTS (Tables)
NET FINANCE COSTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Disclosure of detailed information about net finance costs | For the years ended December 31 ($ millions) 2019 2018 Interest expense on financial liabilities measured at amortized cost: Loans and borrowings 291 268 Convertible debentures — 6 Leases 17 — Unwinding of discount rate 13 12 Finance lease income (1 ) — Loss in fair value of non-commodity-related derivative financial instruments (4 ) (4 ) Foreign exchange gains and other (22 ) (3 ) Net finance costs 294 279 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operating Segments [Abstract] | |
Disclosure of operating segments | The aggregate carrying amount of intangible assets and goodwill allocated to each operating segment is as follows: As at December 31 ($ millions) 2019 2018 Goodwill Intangible Assets Total Goodwill Intangible Assets Total Pipelines 2,703 1,505 4,208 1,897 278 2,175 Facilities 541 97 638 541 102 643 Marketing & New Ventures 1,440 112 1,552 1,440 131 1,571 Corporate — 31 31 — 20 20 4,684 1,745 6,429 3,878 531 4,409 For the year ended December 31, 2019 Pipelines Facilities Marketing & New Ventures Corporate & Inter-Division Eliminations Total ($ millions) Revenue from external customers 1,650 776 4,804 — 7,230 Inter-division revenue 137 345 — (482 ) — Total revenue (1)(2) 1,787 1,121 4,804 (482 ) 7,230 Operating expenses 436 344 — (178 ) 602 Cost of goods sold, including product purchases — 4 4,417 (311 ) 4,110 Realized gain on commodity-related derivative financial instruments — — (33 ) — (33 ) Share of profit from equity accounted investees 270 50 50 — 370 Depreciation and amortization included in operations 245 168 51 11 475 Unrealized loss on commodity-related derivative financial instruments — — 13 — 13 Gross profit 1,376 655 406 (4 ) 2,433 Depreciation included in general and administrative — — — 36 36 Other general and administrative 30 14 35 181 260 Other expense 3 — 3 9 15 Impairment of investment in equity accounted investees 300 — — — 300 Reportable segment results from operating activities 1,043 641 368 (230 ) 1,822 Net finance costs (income) 9 23 (8 ) 270 294 Reportable segment earnings (loss) before tax 1,034 618 376 (500 ) 1,528 Capital expenditures 892 569 157 27 1,645 Contributions to equity accounted investees 13 73 177 — 263 For the year ended December 31, 2018 Pipelines Facilities (3) Marketing & New Ventures (3) Corporate & Inter-Division Eliminations Total ($ millions) Revenue from external customers 1,464 712 5,175 — 7,351 Inter-division revenue 124 302 — (426 ) — Total revenue (1)(2) 1,588 1,014 5,175 (426 ) 7,351 Operating expenses 396 313 — (158 ) 551 Cost of goods sold, including product purchases — 8 4,789 (282 ) 4,515 Realized loss on commodity-related derivative financial instruments — — 51 — 51 Share of profit from equity accounted investees 279 30 102 — 411 Depreciation and amortization included in operations 216 149 26 — 391 Unrealized gain on commodity-related derivative financial instruments — — (73 ) — (73 ) Gross profit 1,255 574 484 14 2,327 Depreciation included in general and administrative — — — 26 26 Other general and administrative 26 17 41 169 253 Other expense — 5 12 10 27 Reportable segment results from operating activities 1,229 552 431 (191 ) 2,021 Net finance costs 9 6 16 248 279 Reportable segment earnings (loss) before tax 1,220 546 415 (439 ) 1,742 Capital expenditures 711 348 134 33 1,226 Contributions to equity accounted investees — 56 2 — 58 (1) Total revenue includes $215 million ( 2018 : $265 million ) associated with U.S. revenues. (2) During both periods, one customer accounted for 10 percent or more of total revenues, with $718 million ( 2018 : $792 million ) reported throughout all segments. (3) Revenue and cost of goods sold reported for all 2018 periods have been recast to reflect updated presentation for 2019, where the majority of cost of goods sold and corresponding revenues are reported in Marketing & New Ventures. |
Disclosure of non-current assets | For the years ended December 31 ($ millions) 2019 2018 Canada 26,596 20,936 United States 5,569 4,715 Total non-current assets (1) 32,165 25,651 (1) Excludes deferred income tax assets. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Disclosure of earnings per common share | Earnings Attributable to Common Shareholders For the years ended December 31 ($ millions) 2019 2018 Earnings 1,492 1,278 Dividends on preferred shares (123 ) (122 ) Cumulative dividends on preferred shares, not yet declared (8 ) (3 ) Basic earnings attributable to common shareholders 1,361 1,153 Effect of after-tax interest on debentures to earnings — 4 Diluted earnings attributable to common shareholders 1,361 1,157 Weighted Average Number of Common Shares (In millions of shares, except as noted) 2019 2018 Issued common shares at January 1 508 503 Effect of shares issued on Acquisition 1 — Effect of shares issued on exercise of options 3 1 Effect of conversion of convertible debentures — 1 Basic weighted average number of common shares at December 31 512 505 Dilutive effect of debentures converted — 2 Dilutive effect of share options on issue 2 2 Diluted weighted average number of common shares at December 31 514 509 Basic earnings per common share (dollars) 2.66 2.28 Diluted earnings per common share (dollars) 2.65 2.28 |
PENSION PLAN (Tables)
PENSION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits [Abstract] | |
Disclosure of obligations and plan assumptions | As at December 31 ($ millions) 2019 2018 Registered defined benefit net obligation 19 19 Supplemental defined benefit net obligation 16 12 Net employee benefit obligations 35 31 Principal actuarial assumptions used: As at December 31 (weighted average percent) 2019 2018 Discount rate 3.1 % 3.8 % Future pension earning increases 4.0 % 4.0 % Assumptions regarding future mortality are based on published statistics and mortality tables. The current longevities underlying the values of the liabilities in the defined plans are as follows: As at December 31 (years) 2019 2018 Longevity at age 65 for current pensioners Males 21.8 21.7 Females 24.2 24.1 Longevity at age 65 for current member aged 45 Males 22.8 22.8 Females 25.1 25.1 |
Disclosure of analysis of present value of defined benefit obligations | Defined Benefit Obligations As at December 31 ($ millions) 2019 2018 Registered Plans Supplemental Plan Registered Plan Supplemental Plan Present value of unfunded obligations — 16 — 12 Present value of funded obligations 250 — 212 — Total present value of obligations 250 16 212 12 Fair value of plan assets 231 — 193 — Recognized liability for defined benefit obligations (19 ) (16 ) (19 ) (12 ) |
Disclosure of fair value of plan assets | Registered Defined Benefit Pension Plan Assets Comprise As at December 31 (Percent) 2019 2018 Equity securities 62 61 Debt 38 39 100 100 |
Disclosure of movement in benefit obligation and plan assets, recognized expenses, and actuarial gains and losses | Actuarial Gains and Losses Recognized in Other Comprehensive Income 2019 2018 ($ millions) Registered Plans Supplemental Plan Total Registered Plan Supplemental Plan Total Balance at January 1 (28 ) (1 ) (29 ) (22 ) (1 ) (23 ) Remeasurements: — Financial assumptions (21 ) (1 ) (22 ) 3 — 3 Experience adjustments — — — — — — Return on plan assets excluding interest income 16 — 16 (9 ) — (9 ) Recognized loss during the period after tax (5 ) (1 ) (6 ) (6 ) — (6 ) Balance at December 31 (33 ) (2 ) (35 ) (28 ) (1 ) (29 ) Movement in the Present Value of the Defined Benefit Pension Obligation 2019 2018 ($ millions) Registered Plans Supplemental Plan Registered Plan Supplemental Plan Defined benefits obligations at January 1 212 12 192 11 Benefits paid by the plan (12 ) — (12 ) — Current service costs 15 1 14 1 Interest expense 8 — 7 — Transfer from Younger — — 16 — Actuarial losses (gains) in other comprehensive income 27 3 (5 ) — Defined benefit obligations at December 31 250 16 212 12 Movement in the Present Value of Registered Defined Benefit Pension Plan Assets ($ millions) 2019 2018 Fair value of plan assets at January 1 193 182 Contributions paid into the plan 20 19 Benefits paid by the plan (12 ) (12 ) Return on plan assets 22 (13 ) Transfer from Younger — 10 Interest income 8 7 Fair value of registered plan assets at December 31 231 193 Expense Recognition in Earnings For the years ended December 31 ($ millions) 2019 2018 Registered Plan Current service costs 15 14 Interest on obligation 8 8 Expected return on plan assets (8 ) (7 ) 15 15 The expense is recognized in the following line items in the consolidated statement of comprehensive income: For the years ended December 31 ($ millions) 2019 2018 Registered Plan Operating expenses 7 8 General and administrative expense 8 7 15 15 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangements [Abstract] | |
Disclosure of terms and conditions of share-based payment arrangement | The terms and conditions relating to the grants of the share option program and the long-term share unit award incentive plans are listed in the tables below: Grant Date Share Options Granted to Employees (thousands of options, except as noted) Number of Options Contractual Life of Options March 6, 2018 1,993 7 May 14, 2018 310 7 July 10, 2018 424 7 August 15, 2018 961 7 October 10, 2018 94 7 November 13, 2018 939 7 December 31, 2018 34 7 March 5, 2019 2,409 7 April 8, 2019 367 7 July 9, 2019 249 7 August 14, 2019 1,162 7 October 8, 2019 97 7 November 12, 2019 1,145 7 One-third vest on the first anniversary of the grant date, one-third vest on the second anniversary of the grant date and one-third vest on the third anniversary of the grant date. Long-Term Share Unit Award Incentive Plan (1) Grant date RSUs, PSUs and DSUs to Officers, Non-Officers (2) and Directors (thousands of units, except as noted) PSUs (3) RSUs (3) DSUs Total January 1, 2018 404 395 44 843 January 1, 2019 475 460 36 971 (1) Distribution Units are granted in addition to RSU and PSU grants based on notional accrued dividends from RSU and PSU granted but not paid. (2) Non-Officers defined as senior selected positions within Pembina. (3) Contractual life of 3 years. |
Disclosure of number and weighted average exercise prices of share options | The number and weighted average exercise prices of share options as follows: (thousands of options, except as noted) Number of Options Weighted Average Exercise Price (dollars) Outstanding at December 31, 2017 15,677 $40.94 Granted 4,755 $43.86 Exercised (1,729 ) $35.34 Forfeited (523 ) $41.56 Expired (252 ) $49.20 Outstanding at December 31, 2018 17,928 $42.12 Granted 5,470 $48.27 Exercised (3,979 ) $37.95 Forfeited (655 ) $45.29 Expired (180 ) $48.98 Outstanding at December 31, 2019 18,584 $44.65 |
Disclosure of range of exercise prices of outstanding share options | As of December 31, 2019 , the following options are outstanding: (thousands of options, except as noted) Exercise Price (dollars) Number Outstanding at December 31, 2019 Options Exercisable Weighted Average Remaining Life $29.60 – $41.38 3,466 3,426 3.1 $41.39 – $43.21 3,524 1,618 4.7 $43.22 – $46.00 3,491 2,170 4.2 $46.01 – $48.59 4,350 279 6.2 $48.60 – $52.01 3,753 2,057 3.9 Total 18,584 9,550 4.5 |
Disclosure of number and weighted average remaining contractual life of outstanding share options | As of December 31, 2019 , the following options are outstanding: (thousands of options, except as noted) Exercise Price (dollars) Number Outstanding at December 31, 2019 Options Exercisable Weighted Average Remaining Life $29.60 – $41.38 3,466 3,426 3.1 $41.39 – $43.21 3,524 1,618 4.7 $43.22 – $46.00 3,491 2,170 4.2 $46.01 – $48.59 4,350 279 6.2 $48.60 – $52.01 3,753 2,057 3.9 Total 18,584 9,550 4.5 |
Disclosure of indirect measurement of fair value of goods or services received, share options granted during period | Share Options Granted For the years ended December 31 (dollars, except as noted) 2019 2018 Weighted average Fair value at grant date 4.12 3.86 Expected volatility (percent) 18.7 20.3 Expected option life (years) 3.67 3.67 Expected annual dividends per option 2.36 2.24 Expected forfeitures (percent) 6.6 6.7 Risk-free interest rate (based on government bonds) (percent) 1.6 2.1 |
Disclosure of employee share-based compensation expense | Employee Expenses For the years ended December 31 ($ millions) 2019 2018 Share option plan, equity settled 16 14 Long-term share unit award incentive plan 50 49 Share-based compensation expense 66 63 Total carrying amount of liabilities for cash settled arrangements 95 96 Total intrinsic value of liability for vested benefits 57 57 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Disclosure of aging of trade and other receivables | At December 31, the aging of trade and other receivables was as follows: Past Due 2019 2018 31-60 days past due 1 2 Greater than 61 days 7 — 8 2 |
Disclosure of how entity manages liquidity risk | Liquidity risk is the risk Pembina will not be able to meet its financial obligations as they come due. The following are the contractual maturities of financial liabilities, including estimated interest payments. Outstanding Balances Due by Period December 31, 2019 Carrying Amount Expected Cash Flows Less Than 1 Year 1 - 3 Years 3 - 5 Years More Than 5 Years ($ millions) Trade payables and accrued liabilities 1,013 1,013 1,013 — — — Loans and borrowings 10,152 14,565 477 2,379 3,337 8,372 Dividends payable 110 110 110 — — — Derivative financial liabilities 9 9 9 — — — Lease liabilities 819 1,152 130 237 179 606 |
Disclosure of financial instruments by type of interest rate | At the reporting date, the interest rate profile of Pembina's interest-bearing financial instruments was: As at December 31 ($ millions) 2019 2018 Carrying amounts of financial liability Fixed rate instruments (1) 8,874 6,232 Variable rate instruments (2) 2,097 1,305 10,971 7,537 (1) Includes lease liabilities following the adoption of IFRS 16, see "Changes in Accounting Policies" (2) At December 31, 2019 , Pembina held no positions in financial derivative contracts to fix interest rates ( December 31, 2018 : nil ). |
Disclosure of cash flow sensitivity analysis for variable rate instruments | A change of 100 basis points in interest rates at the reporting date would have (increased) decreased earnings by the amounts shown below. This analysis assumes that all other variables remain constant. As at December 31 ($ millions) 2019 2018 ± 100 bp ± 100 bp Earnings sensitivity (net) ±9 ±13 |
Disclosure of fair value and carrying amounts of financial assets | The fair values of financial assets and liabilities, together with the carrying amounts shown in the consolidated statements of financial position, are shown in the table below. Certain non-derivative financial instruments measured at amortized cost including cash and cash equivalents, trade receivables and other, finance lease receivables, advances to related parties and trade payables and other have been excluded because they have carrying amounts that approximate their fair value due to the nature of the item or the short time to maturity. These instruments would be classified in Level 2 of the fair value hierarchy. 2019 2018 As at December 31 Carrying Fair Value (1) Carrying Value Fair Value (1) ($ millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets carried at fair value Derivative financial instruments 48 — 48 — 54 — 54 — Advances to related parties (2) — — — — 58 — — 58 48 — 48 — 112 — 54 58 Financial liabilities carried at fair value Derivative financial instruments 9 — 9 — 6 — 6 — Financial liabilities carried at amortized cost Loans and borrowings (3) 10,152 — 10,729 — 7,537 — 7,588 — (1) The basis for determining fair value is disclosed in note 5. (2) Advances to related parties carried at fair value consisted of funds advanced by Pembina to a jointly controlled entity with an equity conversion option that was exercised during the first quarter of 2019. US $43 million of advances were converted to shares during the first quarter of 2019 and are included in the Investments in Equity Accounted Investees balance in the condensed consolidated interim statements of financial position at December 31, 2019 . (3) Carrying value of current and non-current balances. The following table is a summary of the net derivative financial instruments, which is consistent with the gross balances: 2019 2018 As at December 31 ($ millions) Current Asset Non-Current Asset Current Liability Non-Current Liability Total Current Asset Non-Current Asset Current Liability Non-Current Liability Total Commodity, power, storage and rail financial instruments 34 5 (6 ) (3 ) 30 44 — (2 ) — 42 Foreign exchange 6 3 — — 9 10 — (4 ) — 6 Net derivative financial instruments 40 8 (6 ) (3 ) 39 54 — (6 ) — 48 |
Disclosure of fair value and carrying amounts of financial liabilities | The fair values of financial assets and liabilities, together with the carrying amounts shown in the consolidated statements of financial position, are shown in the table below. Certain non-derivative financial instruments measured at amortized cost including cash and cash equivalents, trade receivables and other, finance lease receivables, advances to related parties and trade payables and other have been excluded because they have carrying amounts that approximate their fair value due to the nature of the item or the short time to maturity. These instruments would be classified in Level 2 of the fair value hierarchy. 2019 2018 As at December 31 Carrying Fair Value (1) Carrying Value Fair Value (1) ($ millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets carried at fair value Derivative financial instruments 48 — 48 — 54 — 54 — Advances to related parties (2) — — — — 58 — — 58 48 — 48 — 112 — 54 58 Financial liabilities carried at fair value Derivative financial instruments 9 — 9 — 6 — 6 — Financial liabilities carried at amortized cost Loans and borrowings (3) 10,152 — 10,729 — 7,537 — 7,588 — (1) The basis for determining fair value is disclosed in note 5. (2) Advances to related parties carried at fair value consisted of funds advanced by Pembina to a jointly controlled entity with an equity conversion option that was exercised during the first quarter of 2019. US $43 million of advances were converted to shares during the first quarter of 2019 and are included in the Investments in Equity Accounted Investees balance in the condensed consolidated interim statements of financial position at December 31, 2019 . (3) Carrying value of current and non-current balances. The following table is a summary of the net derivative financial instruments, which is consistent with the gross balances: 2019 2018 As at December 31 ($ millions) Current Asset Non-Current Asset Current Liability Non-Current Liability Total Current Asset Non-Current Asset Current Liability Non-Current Liability Total Commodity, power, storage and rail financial instruments 34 5 (6 ) (3 ) 30 44 — (2 ) — 42 Foreign exchange 6 3 — — 9 10 — (4 ) — 6 Net derivative financial instruments 40 8 (6 ) (3 ) 39 54 — (6 ) — 48 |
Disclosure of discount rates used to determine fair value of liabilities | The interest rates used to discount estimated cash flows, when applicable, are based on the government yield curve at the reporting date plus an adequate credit spread, and were as follows: As at December 31 (percent) 2019 2018 Derivatives 2.0 - 2.5 2.2 - 2.3 Loans and borrowings 2.3 - 4.0 2.6 - 5.6 |
Disclosure of type of risk sensitivity analysis | The following table shows the impact on earnings if the underlying risk variables of the derivative financial instruments changed by a specified amount, with other variables held constant. As at December 31, 2019 ($ millions) (1) + Change - Change Frac spread related Natural gas (AECO +/- $0.25 per GJ) 9 (9 ) NGL (includes propane, butane and condensate) (Belvieu/Conway +/- U.S. $0.10 per gal) (43 ) 43 Foreign exchange (US$ vs. C$) (FX rate +/- $0.10) (46 ) 46 Product margin Crude oil (WTI +/- $2.50 per bbl) (2 ) 2 NGL (includes propane, butane and condensate) (Belvieu/Conway +/- U.S. $0.10 per gal) N/A N/A (1) As at December 31, 2019 , there were no outstanding financial derivative contracts related to power and interest rates. |
GROUP ENTITIES (Tables)
GROUP ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Interests In Other Entities [Abstract] | |
Disclosure of interests in subsidiaries | As at December 31 Ownership Interest (percentages) 2019 2018 Pembina Gas Services Limited Partnership 100 100 Pembina Holding Canada L.P. 100 100 Pembina Infrastructure and Logistics L.P. 100 100 Pembina Midstream Limited Partnership 100 100 Pembina Oil Sands Pipeline L.P. 100 100 Pembina Pipeline 100 100 Pembina Empress NGL Partnership 100 100 Ruby Blocker LLC 100 100 Pembina Cochin LLC 100 — |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | ($ millions) Transaction Value Year Ended December 31 Post-employment benefit plan Transaction 2019 2018 Defined benefit plan Funding 20 19 Equity Accounted Investees ($ millions) 2019 2018 For the years ended December 31: Services provided 82 42 Services received 2 — Interest income 10 6 As at December 31: Advances to related parties (1) 131 135 Trade receivables and other 17 12 (1) During the year ended December 31, 2019, Pembina converted $58 million in advances to Canada Kuwait Petrochemical Corporation into equity contributions, and advanced US$31 million (2018: US$31 million) to Ruby Pipeline, L.L.C. and $17 million (2018: nil), net of repayments, to Fort Saskatchewan Ethylene Storage Limited Partnership. |
Disclosure of key management personnel compensation | Key management personnel compensation comprised: For the years ended December 31 ($ millions) 2019 2018 Short-term employee benefits 10 10 Share-based compensation and other 13 13 Total compensation of key management 23 23 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of contingent liabilities | Pembina had the following contractual obligations outstanding at December 31, 2019 : Contractual Obligations Payments Due by Period ($ millions) Total Less than 1 Year 1 – 3 Years 3 – 5 Years After 5 Years Leases (1) 1,152 130 237 179 606 Loans and borrowings (2) 14,565 477 2,379 3,337 8,372 Construction commitments (3) 1,766 1,128 123 33 482 Other (4) 659 109 158 93 299 Total contractual obligations 18,142 1,844 2,897 3,642 9,759 (1) Includes terminals, rail, office space, land and vehicle leases. (2) Excluding deferred financing costs. Including interest payments on senior unsecured notes. (3) Excluding significant projects that are awaiting regulatory approval at December 31, 2019 , projects which Pembina is not committed to construct, and projects that are executed by equity accounted investees. (4) Includes $65 million in commitments related to leases that have not yet commenced. |
CHANGES IN ACCOUNTING POLICIE_2
CHANGES IN ACCOUNTING POLICIES - Consolidated Financial Statement Impacts (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2019 | Jan. 01, 2019 | |
Current assets | ||||
Trade receivables and other (Note 7) | $ 604 | [1] | $ 692 | |
Non-current assets | ||||
Property, plant and equipment (Note 8) | 14,730 | [1] | 18,775 | |
Right-of-use assets | 822 | $ 427 | ||
Current liabilities | ||||
Trade payables and other (Note 12) | 803 | [1] | 1,013 | |
Loans and borrowings (Note 14) | 480 | [1] | 74 | |
Lease liabilities | 112 | |||
Non-current liabilities | ||||
Loans and borrowings (Note 14) | 7,057 | [1] | 10,078 | |
Lease liabilities | 707 | |||
Deferred tax liabilities (Note 11) | 2,774 | [1] | 2,906 | |
Other liabilities | 239 | [1] | 179 | |
Equity | ||||
Attributable to shareholders | 14,344 | [1] | 16,710 | |
Lease liabilities | $ 819 | |||
IFRS 16 | ||||
Current assets | ||||
Trade receivables and other (Note 7) | 605 | |||
Non-current assets | ||||
Property, plant and equipment (Note 8) | 14,712 | |||
Right-of-use assets | 427 | |||
Advances to related parties and other assets (Note 27) | 177 | |||
Current liabilities | ||||
Trade payables and other (Note 12) | 863 | |||
Loans and borrowings (Note 14) | 472 | |||
Lease liabilities | 64 | |||
Non-current liabilities | ||||
Loans and borrowings (Note 14) | 7,046 | |||
Lease liabilities | 416 | |||
Deferred tax liabilities (Note 11) | 2,782 | |||
Other liabilities | 198 | |||
Equity | ||||
Attributable to shareholders | 14,366 | |||
Lease liabilities | 480 | |||
Sublease arrangements | 33 | |||
Onerous lease liability | 20 | |||
Previously Reported | IFRS 16 | ||||
Current assets | ||||
Trade receivables and other (Note 7) | 604 | |||
Non-current assets | ||||
Property, plant and equipment (Note 8) | 14,730 | |||
Advances to related parties and other assets (Note 27) | 144 | |||
Current liabilities | ||||
Trade payables and other (Note 12) | 870 | |||
Loans and borrowings (Note 14) | 480 | |||
Non-current liabilities | ||||
Loans and borrowings (Note 14) | 7,057 | |||
Deferred tax liabilities (Note 11) | 2,774 | |||
Other liabilities | 239 | |||
Equity | ||||
Attributable to shareholders | $ 14,344 | |||
Adjustments | IFRS 16 | ||||
Current assets | ||||
Trade receivables and other (Note 7) | 1 | |||
Non-current assets | ||||
Property, plant and equipment (Note 8) | (18) | |||
Right-of-use assets | 427 | |||
Advances to related parties and other assets (Note 27) | 33 | |||
Current liabilities | ||||
Trade payables and other (Note 12) | (7) | |||
Loans and borrowings (Note 14) | (8) | |||
Lease liabilities | 64 | |||
Non-current liabilities | ||||
Loans and borrowings (Note 14) | (11) | |||
Lease liabilities | 416 | |||
Deferred tax liabilities (Note 11) | 8 | |||
Other liabilities | (41) | |||
Equity | ||||
Attributable to shareholders | $ 22 | |||
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
CHANGES IN ACCOUNTING POLICIE_3
CHANGES IN ACCOUNTING POLICIES - Reconciliation of Lease Liability (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Lease commitments, disclosed at December 31, 2018 | $ 796 | ||
Leases not yet commenced | $ (65) | ||
Lease liabilities recognized as at January 1, 2019 | $ 819 | ||
IFRS 16 | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Leases not yet commenced | $ (33) | ||
Non-lease components | (217) | ||
Renewal options reasonably certain to be exercised | 53 | ||
Total undiscounted lease payments | 599 | ||
Discounting impact | (119) | ||
Lease liabilities recognized as at January 1, 2019 | $ 480 | ||
Weighted average lessee's incremental borrowing rate applied to lease liabilities recognised at date of initial application of IFRS 16 | 4.01% |
DETERMINATION OF FAIR VALUES (D
DETERMINATION OF FAIR VALUES (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurement [Abstract] | |
Period of measure for calculating weighted average share price of share options | 20 days |
ACQUISITION - Narrative (Detail
ACQUISITION - Narrative (Details) - Kinder Morgan Canada Limited $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2019CAD ($) | Dec. 31, 2019CAD ($) | Dec. 16, 2019CAD ($)shares$ / shares | |
Disclosure of detailed information about business combination [line items] | |||
Purchase price consideration | $ 4,255 | ||
Cash consideration | 2,009 | ||
Share consideration | 2,300 | ||
Property, plant and equipment recognised as of acquisition date | 2,660 | ||
Identifiable intangible assets recognised as of acquisition date | 1,254 | ||
Goodwill expected to be deductible for tax purposes | 180 | ||
Acquisition-related costs for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | $ 12 | ||
Revenue of acquiree since acquisition date | 27 | ||
Earnings of acquiree since acquisition date | $ 11 | ||
Revenue of combined entity as if combination occurred at beginning of period | $ 579 | ||
Earnings of combined entity as if combination occurred at beginning of period | $ 65 | ||
Ordinary shares | |||
Disclosure of detailed information about business combination [line items] | |||
Share consideration | $ 1,710 | ||
Equity interests of acquirer (in shares) | shares | 35.7 | ||
Share price (in CAD per share) | $ / shares | $ 47.87 | ||
Series 23 preference share | |||
Disclosure of detailed information about business combination [line items] | |||
Equity interests of acquirer (in shares) | shares | 12 | ||
Share price (in CAD per share) | $ / shares | $ 24.43 | ||
Series 25 preference share | |||
Disclosure of detailed information about business combination [line items] | |||
Equity interests of acquirer (in shares) | shares | 10 | ||
Share price (in CAD per share) | $ / shares | $ 24.33 |
ACQUISITION - Purchase Price Co
ACQUISITION - Purchase Price Consideration (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 16, 2019 | Dec. 31, 2018 |
Purchase Price Consideration | |||
Goodwill | $ 4,684 | $ 3,878 | |
Kinder Morgan Canada Limited | |||
Purchase Price Consideration | |||
Equity interests of acquirer | $ 2,300 | ||
Cash (net of cash acquired) | 2,009 | ||
Purchase Price Consideration | 4,255 | ||
Current assets | 68 | ||
Property, plant and equipment | 2,660 | ||
Intangible assets | 1,254 | ||
Right-of-use assets | 348 | ||
Goodwill | 809 | ||
Other assets | 9 | ||
Current liabilities | (124) | ||
Deferred tax liabilities | (281) | ||
Decommissioning provision | (74) | ||
Lease liability | (348) | ||
Other liabilities | (66) | ||
Identifiable assets acquired (liabilities assumed) | 4,255 | ||
Kinder Morgan Canada Limited | Common shares | |||
Purchase Price Consideration | |||
Equity interests of acquirer | 1,710 | ||
Kinder Morgan Canada Limited | Preferred shares | |||
Purchase Price Consideration | |||
Equity interests of acquirer | $ 536 |
TRADE RECEIVABLES AND OTHER (De
TRADE RECEIVABLES AND OTHER (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |||
Trade receivables from customers | $ 575 | $ 501 | |
Other receivables | 92 | 88 | |
Prepayments | 25 | 16 | |
Impairment loss allowance | 0 | (1) | |
Total trade receivables and other | $ 692 | $ 604 | [1] |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Property Types (Details) - CAD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | [1] | $ 14,730 | ||
Property, plant and equipment, ending balance | 18,775 | $ 14,730 | [1] | |
Cost | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 17,080 | 15,576 | ||
Additions and transfers | 1,675 | 1,534 | ||
Reclassification on adoption of IFRS 16 (Note 3) | (44) | |||
Acquisition (Note 6) | 2,660 | |||
Change in decommissioning provision | 158 | 14 | ||
Foreign exchange adjustments | (34) | |||
Disposals and other | (43) | (44) | ||
Property, plant and equipment, ending balance | 21,452 | 17,080 | ||
Depreciation | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | (2,350) | (2,030) | ||
Reclassification on adoption of IFRS 16 (Note 3) | 26 | |||
Depreciation | 392 | 364 | ||
Disposals and other | 39 | 44 | ||
Property, plant and equipment, ending balance | (2,677) | (2,350) | ||
Land and Land Rights | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 328 | |||
Property, plant and equipment, ending balance | 440 | 328 | ||
Land and Land Rights | Cost | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 340 | 329 | ||
Additions and transfers | 32 | 12 | ||
Reclassification on adoption of IFRS 16 (Note 3) | 0 | |||
Acquisition (Note 6) | 86 | |||
Change in decommissioning provision | 0 | 0 | ||
Foreign exchange adjustments | (2) | |||
Disposals and other | 0 | (1) | ||
Property, plant and equipment, ending balance | 456 | 340 | ||
Land and Land Rights | Depreciation | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | (12) | (9) | ||
Reclassification on adoption of IFRS 16 (Note 3) | 0 | |||
Depreciation | 4 | 3 | ||
Disposals and other | 0 | 0 | ||
Property, plant and equipment, ending balance | (16) | (12) | ||
Pipelines | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 5,943 | |||
Property, plant and equipment, ending balance | 7,440 | 5,943 | ||
Pipelines | Cost | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 7,164 | 6,650 | ||
Additions and transfers | 215 | 531 | ||
Reclassification on adoption of IFRS 16 (Note 3) | 0 | |||
Acquisition (Note 6) | 1,434 | |||
Change in decommissioning provision | 10 | (10) | ||
Foreign exchange adjustments | (17) | |||
Disposals and other | (3) | (7) | ||
Property, plant and equipment, ending balance | 8,803 | 7,164 | ||
Pipelines | Depreciation | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | (1,221) | (1,096) | ||
Reclassification on adoption of IFRS 16 (Note 3) | 0 | |||
Depreciation | 155 | 142 | ||
Disposals and other | 13 | 17 | ||
Property, plant and equipment, ending balance | (1,363) | (1,221) | ||
Facilities and Equipment | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 6,292 | |||
Property, plant and equipment, ending balance | 7,741 | 6,292 | ||
Facilities and Equipment | Cost | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 7,159 | 6,715 | ||
Additions and transfers | 691 | 469 | ||
Reclassification on adoption of IFRS 16 (Note 3) | 0 | |||
Acquisition (Note 6) | 798 | |||
Change in decommissioning provision | 143 | 5 | ||
Foreign exchange adjustments | (4) | |||
Disposals and other | (31) | (30) | ||
Property, plant and equipment, ending balance | 8,756 | 7,159 | ||
Facilities and Equipment | Depreciation | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | (867) | (721) | ||
Reclassification on adoption of IFRS 16 (Note 3) | 0 | |||
Depreciation | 174 | 164 | ||
Disposals and other | 26 | 18 | ||
Property, plant and equipment, ending balance | (1,015) | (867) | ||
Cavern Storage and Other | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 1,228 | |||
Property, plant and equipment, ending balance | 1,661 | 1,228 | ||
Cavern Storage and Other | Cost | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 1,478 | 1,223 | ||
Additions and transfers | 203 | 231 | ||
Reclassification on adoption of IFRS 16 (Note 3) | (44) | |||
Acquisition (Note 6) | 314 | |||
Change in decommissioning provision | 5 | 19 | ||
Foreign exchange adjustments | 0 | |||
Disposals and other | (12) | 5 | ||
Property, plant and equipment, ending balance | 1,944 | 1,478 | ||
Cavern Storage and Other | Depreciation | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | (250) | (204) | ||
Reclassification on adoption of IFRS 16 (Note 3) | 26 | |||
Depreciation | 59 | 55 | ||
Disposals and other | 0 | 9 | ||
Property, plant and equipment, ending balance | (283) | (250) | ||
Assets Under Construction | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 939 | |||
Property, plant and equipment, ending balance | 1,493 | 939 | ||
Assets Under Construction | Cost | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 939 | 659 | ||
Additions and transfers | 534 | 291 | ||
Reclassification on adoption of IFRS 16 (Note 3) | 0 | |||
Acquisition (Note 6) | 28 | |||
Change in decommissioning provision | 0 | 0 | ||
Foreign exchange adjustments | (11) | |||
Disposals and other | 3 | (11) | ||
Property, plant and equipment, ending balance | 1,493 | 939 | ||
Assets Under Construction | Depreciation | ||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||
Property, plant and equipment, beginning balance | 0 | 0 | ||
Reclassification on adoption of IFRS 16 (Note 3) | 0 | |||
Depreciation | 0 | 0 | ||
Disposals and other | 0 | 0 | ||
Property, plant and equipment, ending balance | $ 0 | $ 0 | ||
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | $ 18,775 | $ 14,730 | [1] | |
Capitalized borrowing costs | $ 42 | $ 35 | ||
Minimum | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Capitalized borrowing costs, capitalization rate | 3.91% | 3.86% | ||
Maximum | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Capitalized borrowing costs, capitalization rate | 4.05% | 4.01% | ||
Construction in progress | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | $ 1,493 | $ 939 | ||
Pipeline Assets | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | $ 7,440 | 5,943 | ||
Pipeline Assets | Minimum | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Useful life | 3 years | |||
Pipeline Assets | Maximum | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Useful life | 75 years | |||
Pipeline Assets | Average | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Useful life | 40 years | |||
Facilities and Equipment | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | $ 7,741 | 6,292 | ||
Facilities and Equipment | Minimum | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Useful life | 3 years | |||
Facilities and Equipment | Maximum | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Useful life | 75 years | |||
Facilities and Equipment | Average | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Useful life | 40 years | |||
Other | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | $ 1,661 | 1,228 | ||
Other | Minimum | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Useful life | 3 years | |||
Other | Maximum | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Useful life | 40 years | |||
Other | Average | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Useful life | 40 years | |||
Gross carrying amount | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | $ 21,452 | 17,080 | $ 15,576 | |
Gross carrying amount | Construction in progress | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 1,493 | 939 | 659 | |
Gross carrying amount | Pipeline Assets | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 8,803 | 7,164 | 6,650 | |
Gross carrying amount | Facilities and Equipment | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 8,756 | 7,159 | 6,715 | |
Gross carrying amount | Other | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | $ 1,944 | $ 1,478 | $ 1,223 | |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Intangible Assets and Goodwill (Details) - CAD ($) $ in Millions | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | [1] | $ 4,409 | |||
Intangible assets and goodwill, ending balance | $ 6,429 | $ 4,409 | [1] | ||
Minimum | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Finite-lived intangible asset, useful life | 7 years | ||||
Maximum | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Finite-lived intangible asset, useful life | 40 years | ||||
Cost | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | $ 4,744 | 5,002 | |||
Additions and other | 13 | 19 | |||
Transfers | (277) | ||||
Acquisition (Note 6) | 2,063 | ||||
Foreign exchange adjustments | (15) | ||||
Intangible assets and goodwill, ending balance | 6,805 | 4,744 | |||
Amortization | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | (335) | (288) | |||
Amortization | 41 | 47 | |||
Intangible assets and goodwill, ending balance | (376) | (335) | |||
Goodwill | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | 3,878 | ||||
Intangible assets and goodwill, ending balance | 4,684 | 3,878 | |||
Goodwill | Cost | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | 3,878 | 3,871 | |||
Additions and other | 0 | 7 | |||
Transfers | 0 | ||||
Acquisition (Note 6) | 809 | ||||
Foreign exchange adjustments | (3) | ||||
Intangible assets and goodwill, ending balance | 4,684 | 3,878 | |||
Goodwill | Amortization | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | 0 | 0 | |||
Intangible assets and goodwill, ending balance | 0 | 0 | |||
Purchase and Sale Contracts and Other | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | 63 | ||||
Intangible assets and goodwill, ending balance | 66 | 63 | |||
Purchase and Sale Contracts and Other | Cost | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | 227 | 216 | |||
Additions and other | 13 | 11 | |||
Transfers | 0 | ||||
Acquisition (Note 6) | 0 | ||||
Foreign exchange adjustments | 0 | ||||
Intangible assets and goodwill, ending balance | 240 | 227 | |||
Purchase and Sale Contracts and Other | Amortization | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | (164) | (145) | |||
Amortization | 10 | 19 | |||
Intangible assets and goodwill, ending balance | (174) | (164) | |||
Customer Relationships | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | 468 | ||||
Intangible assets and goodwill, ending balance | 1,679 | 468 | |||
Customer Relationships | Cost | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | 639 | 638 | |||
Additions and other | 0 | 1 | |||
Transfers | 0 | ||||
Acquisition (Note 6) | 1,254 | ||||
Foreign exchange adjustments | (12) | ||||
Intangible assets and goodwill, ending balance | 1,881 | 639 | |||
Customer Relationships | Amortization | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | (171) | (143) | |||
Amortization | 31 | 28 | |||
Intangible assets and goodwill, ending balance | (202) | (171) | |||
Purchase Option | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | 0 | ||||
Intangible assets and goodwill, ending balance | 0 | 0 | |||
Purchase Option | Cost | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | 0 | 277 | |||
Additions and other | 0 | 0 | |||
Transfers | $ (277) | (277) | |||
Acquisition (Note 6) | 0 | ||||
Foreign exchange adjustments | 0 | ||||
Intangible assets and goodwill, ending balance | 0 | 0 | |||
Purchase Option | Amortization | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | 0 | 0 | |||
Amortization | 0 | 0 | |||
Intangible assets and goodwill, ending balance | 0 | 0 | |||
Intangible Assets | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | 531 | ||||
Intangible assets and goodwill, ending balance | 1,745 | 531 | |||
Intangible Assets | Cost | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | 866 | 1,131 | |||
Additions and other | 13 | 12 | |||
Transfers | (277) | ||||
Acquisition (Note 6) | 1,254 | ||||
Foreign exchange adjustments | (12) | ||||
Intangible assets and goodwill, ending balance | 2,121 | 866 | |||
Intangible Assets | Amortization | |||||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||||
Intangible assets and goodwill, beginning balance | (335) | (288) | |||
Amortization | 41 | 47 | |||
Intangible assets and goodwill, ending balance | $ (376) | $ (335) | |||
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Intangible Assets and Goodwill by Segment (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [line items] | |||
Goodwill | $ 4,684 | $ 3,878 | |
Intangible Assets | 1,745 | 531 | |
Total | 6,429 | 4,409 | [1] |
Operating segments | Pipelines | |||
Disclosure of operating segments [line items] | |||
Goodwill | 2,703 | 1,897 | |
Intangible Assets | 1,505 | 278 | |
Total | 4,208 | 2,175 | |
Operating segments | Facilities | |||
Disclosure of operating segments [line items] | |||
Goodwill | 541 | 541 | |
Intangible Assets | 97 | 102 | |
Total | 638 | 643 | |
Operating segments | Marketing & New Ventures | |||
Disclosure of operating segments [line items] | |||
Goodwill | 1,440 | 1,440 | |
Intangible Assets | 112 | 131 | |
Total | 1,552 | 1,571 | |
Corporate | |||
Disclosure of operating segments [line items] | |||
Goodwill | 0 | 0 | |
Intangible Assets | 31 | 20 | |
Total | $ 31 | $ 20 | |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Key Assumptions of Goodwill Impairment (Details) - Goodwill | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Period of cash flows used in long-term growth estimate of value in use | 75 years | 75 years |
Pipelines | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Pre-tax discount rate | 6.80% | |
Adjusted inflation rate | 1.16% | |
Increase in pre-tax discount rate | 4.14% | |
Facilities | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Pre-tax discount rate | 6.48% | |
Adjusted inflation rate | 1.62% | |
Increase in pre-tax discount rate | 4.85% | |
Marketing & New Ventures | ||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||
Pre-tax discount rate | 10.57% | |
Adjusted inflation rate | 1.80% | |
Increase in pre-tax discount rate | 7.65% |
INVESTMENTS IN EQUITY ACCOUNT_3
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES - Investment Interest (Details) - CAD ($) $ in Millions | Mar. 28, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of joint ventures [line items] | ||||
Share of Profit (Loss) from Equity Investments | $ 370 | $ 411 | [1] | |
Investments in Equity Accounted Investees | $ 5,954 | $ 6,368 | [2] | |
Alliance | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 | 50.00% | 50.00% | ||
Share of Profit (Loss) from Equity Investments | $ 149 | $ 160 | ||
Investments in Equity Accounted Investees | 2,620 | 2,799 | ||
Aux Sable | ||||
Disclosure of joint ventures [line items] | ||||
Share of Profit (Loss) from Equity Investments | 51 | 102 | ||
Investments in Equity Accounted Investees | $ 426 | $ 480 | ||
Aux Sable | Minimum | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 | 42.70% | 42.70% | ||
Aux Sable | Maximum | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 | 50.00% | 50.00% | ||
Ruby Pipeline | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 | 50.00% | 50.00% | ||
Share of Profit (Loss) from Equity Investments | $ 120 | $ 118 | ||
Investments in Equity Accounted Investees | $ 1,273 | $ 1,648 | ||
Veresen Midstream | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 | 45.00% | 45.30% | ||
Share of Profit (Loss) from Equity Investments | $ 48 | $ 26 | ||
Investments in Equity Accounted Investees | $ 1,348 | $ 1,324 | ||
CKPC | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 | 50.00% | 50.00% | ||
Share of Profit (Loss) from Equity Investments | $ (1) | $ 0 | ||
Investments in Equity Accounted Investees | 171 | 0 | ||
Other | ||||
Disclosure of joint ventures [line items] | ||||
Share of Profit (Loss) from Equity Investments | 3 | 5 | ||
Investments in Equity Accounted Investees | $ 116 | $ 117 | ||
Other | Minimum | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 | 50.00% | 50.00% | ||
Other | Maximum | ||||
Disclosure of joint ventures [line items] | ||||
Ownership Interest at December 31 | 75.00% | 75.00% | ||
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. | |||
[2] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
INVESTMENTS IN EQUITY ACCOUNT_4
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES - Narrative (Details) $ in Millions | Dec. 10, 2019CAD ($) | Mar. 28, 2019USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2018CAD ($) | Mar. 26, 2020USD ($) | Feb. 27, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 26, 2019CAD ($) | |
Disclosure of joint ventures [line items] | ||||||||||
Goodwill | $ 4,684,000,000 | $ 4,684,000,000 | $ 3,878,000,000 | |||||||
Property, plant and equipment | 18,775,000,000 | 18,775,000,000 | 14,730,000,000 | [1] | ||||||
Long-term debt | 10,078,000,000 | 10,078,000,000 | 7,057,000,000 | [1] | ||||||
Investments in Equity Accounted Investees | 5,954,000,000 | 5,954,000,000 | 6,368,000,000 | [1] | ||||||
Exchange (loss) gain on translation of foreign operations | (213,000,000) | 330,000,000 | [2] | |||||||
Impairment of investment in equity accounted investees | 300,000,000 | 0 | [2],[3] | |||||||
Distributions from equity accounted investees | 575,000,000 | 622,000,000 | [3] | |||||||
Contributions to equity accounted investees | (206,000,000) | (58,000,000) | [3] | |||||||
Joint ventures | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Goodwill | 98,000,000 | 98,000,000 | 98,000,000 | |||||||
Property, plant and equipment | 2,900,000,000 | 2,900,000,000 | 3,000,000,000 | |||||||
Long-term debt | 42,000,000 | 42,000,000 | 52,000,000 | |||||||
Investments in Equity Accounted Investees | $ 2,300 | |||||||||
Exchange (loss) gain on translation of foreign operations | (169,000,000) | 295,000,000 | ||||||||
Distributions from equity accounted investees | 575,000,000 | 622,000,000 | ||||||||
Contributions to equity accounted investees | (206,000,000) | (58,000,000) | ||||||||
Ruby Pipeline | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Investments in Equity Accounted Investees | 1,273,000,000 | 1,273,000,000 | $ 1,648,000,000 | |||||||
Impairment of investment in equity accounted investees | 300,000,000 | |||||||||
Impairment of investment in equity accounted investees, net | 220,000,000 | |||||||||
Recoverable amount of asset or cash-generating unit | $ 1,300,000,000 | $ 1,300,000,000 | ||||||||
Pre-tax discount rate | 8.00% | 8.00% | 8.00% | |||||||
Proportion of ownership interest in joint venture (percent) | 50.00% | 50.00% | ||||||||
Term Loan | Ruby Pipeline | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Quarterly amortization amount | $ 16 | |||||||||
Ruby Pipeline | Term Loan | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Quarterly amortization amount | $ 8 | |||||||||
Veresen Midstream | Term Loan | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Notional amount | $ 2,600,000,000 | |||||||||
Veresen Midstream | Revolving Credit Facility | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Notional amount | $ 225,000,000 | |||||||||
Alliance | Revolving Credit Facility | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Notional amount | $ 300,000,000 | |||||||||
Increase in borrowing capacity | $ 100,000,000 | |||||||||
If the Discount Rate Used Was Higher By 50 Basis Points | Ruby Pipeline | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Impairment of investment in equity accounted investees | $ 80,000,000 | |||||||||
Impairment of investment in equity accounted investees, net | 60,000,000 | |||||||||
If the Discount Rate Used Was Lower By 50 Basis Points | Ruby Pipeline | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Impairment of investment in equity accounted investees | 90,000,000 | |||||||||
Impairment of investment in equity accounted investees, net | $ 65,000,000 | |||||||||
Entering Into New Borrowing Agreement | Canada Kuwait Petrochemical Limited Partnership | Term Loan | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Notional amount | $ 1,700 | |||||||||
Entering Into New Borrowing Agreement | Canada Kuwait Petrochemical Limited Partnership | Revolving Credit Facility | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Notional amount | $ 150 | |||||||||
Forecast | Term Loan | Ruby Pipeline | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Bullet payment due at maturity | $ 78 | |||||||||
Forecast | Ruby Pipeline | Term Loan | ||||||||||
Disclosure of joint ventures [line items] | ||||||||||
Bullet payment due at maturity | $ 39 | |||||||||
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. | |||||||||
[2] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. | |||||||||
[3] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
INVESTMENTS IN EQUITY ACCOUNT_5
INVESTMENTS IN EQUITY ACCOUNTED INVESTEES - Financial Information of Investments (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Net Income and Comprehensive Income | |||
Revenue | $ 7,230 | $ 7,351 | [1] |
Cost of sales | (5,187) | (5,457) | [1] |
General and administrative expense | (296) | (279) | [1] |
Finance costs and other | (294) | (279) | |
Earnings attributable to shareholders | 1,492 | 1,278 | [1],[2] |
Net Income Attributable To Pembina | 370 | 411 | |
Total comprehensive income attributable to shareholders | 1,273 | 1,602 | [1] |
Comprehensive Income Attributable To Pembina | 370 | 411 | |
Balance Sheet | |||
Current assets | 987 | 1,013 | [3] |
Non-current assets | 32,166 | 25,651 | [3] |
Current liabilities | 1,457 | 1,490 | [3] |
Non-current liabilities | 14,926 | 10,770 | [3] |
Joint ventures | |||
Net Income and Comprehensive Income | |||
Revenue | 3,114 | 3,605 | |
Cost of sales | (1,178) | (1,566) | |
General and administrative expense | (204) | (171) | |
Depreciation and amortization | (486) | (511) | |
Finance costs and other | (286) | (308) | |
Earnings attributable to shareholders | 960 | 1,049 | |
Total comprehensive income attributable to shareholders | 960 | 1,049 | |
Balance Sheet | |||
Current assets | 797 | 838 | |
Non-current assets | 11,379 | 11,667 | |
Current liabilities | 802 | 908 | |
Non-current liabilities | $ 4,985 | $ 5,262 | |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. | ||
[2] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. | ||
[3] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
INCOME TAXES - Movement in Comp
INCOME TAXES - Movement in Components of Deferred Taxes (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred income tax liability (asset), beginning balance | $ 2,774 | $ 2,376 |
Recognized in Earnings | (174) | 394 |
Recognized in Other Comprehensive Income | (1) | (2) |
Acquisition | 281 | 7 |
Equity | 3 | 4 |
Other | 23 | (5) |
Deferred income tax liability (asset), ending balance | 2,906 | 2,774 |
Derivative financial instruments | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred income tax liability (asset), beginning balance | (18) | 11 |
Recognized in Earnings | 5 | (29) |
Recognized in Other Comprehensive Income | 0 | 0 |
Acquisition | 0 | 0 |
Equity | 0 | 0 |
Other | 0 | 0 |
Deferred income tax liability (asset), ending balance | (13) | (18) |
Employee benefits | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred income tax liability (asset), beginning balance | 9 | 7 |
Recognized in Earnings | (1) | 0 |
Recognized in Other Comprehensive Income | 1 | 2 |
Acquisition | 0 | 0 |
Equity | 0 | 0 |
Other | 0 | 0 |
Deferred income tax liability (asset), ending balance | 9 | 9 |
Share-based payments | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred income tax liability (asset), beginning balance | 26 | 21 |
Recognized in Earnings | (2) | 5 |
Recognized in Other Comprehensive Income | 0 | 0 |
Acquisition | 0 | 0 |
Equity | 0 | 0 |
Other | 0 | 0 |
Deferred income tax liability (asset), ending balance | 24 | 26 |
Provisions | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred income tax liability (asset), beginning balance | 156 | 153 |
Recognized in Earnings | 29 | 3 |
Recognized in Other Comprehensive Income | 0 | 0 |
Acquisition | 20 | 0 |
Equity | 0 | 0 |
Other | 0 | 0 |
Deferred income tax liability (asset), ending balance | 205 | 156 |
Benefit of loss carryforwards | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred income tax liability (asset), beginning balance | 153 | 180 |
Recognized in Earnings | 256 | (33) |
Recognized in Other Comprehensive Income | 0 | 0 |
Acquisition | 13 | (7) |
Equity | 0 | 0 |
Other | (22) | 13 |
Deferred income tax liability (asset), ending balance | 400 | 153 |
Other deductible temporary differences | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred income tax liability (asset), beginning balance | 68 | 56 |
Recognized in Earnings | (39) | 16 |
Recognized in Other Comprehensive Income | 0 | 0 |
Acquisition | 2 | 0 |
Equity | (3) | (4) |
Other | 0 | 0 |
Deferred income tax liability (asset), ending balance | 28 | 68 |
Property, plant and equipment | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred income tax liability (asset), beginning balance | 1,660 | 1,361 |
Recognized in Earnings | 301 | 299 |
Recognized in Other Comprehensive Income | 0 | 0 |
Acquisition | 136 | 0 |
Equity | 0 | 0 |
Other | 8 | 0 |
Deferred income tax liability (asset), ending balance | 2,105 | 1,660 |
Intangible assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred income tax liability (asset), beginning balance | 118 | 198 |
Recognized in Earnings | (14) | (80) |
Recognized in Other Comprehensive Income | 0 | 0 |
Acquisition | 180 | 0 |
Equity | 0 | 0 |
Other | 0 | 0 |
Deferred income tax liability (asset), ending balance | 284 | 118 |
Investments in equity accounted investees | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred income tax liability (asset), beginning balance | 1,262 | 1,173 |
Recognized in Earnings | (155) | 89 |
Recognized in Other Comprehensive Income | 0 | 0 |
Acquisition | 0 | 0 |
Equity | 0 | 0 |
Other | 0 | 0 |
Deferred income tax liability (asset), ending balance | 1,107 | 1,262 |
Taxable limited partnership income deferral | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred income tax liability (asset), beginning balance | 122 | 56 |
Recognized in Earnings | (46) | 66 |
Recognized in Other Comprehensive Income | 0 | 0 |
Acquisition | 0 | 0 |
Equity | 0 | 0 |
Other | 0 | 0 |
Deferred income tax liability (asset), ending balance | 76 | 122 |
Other taxable temporary differences | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred income tax liability (asset), beginning balance | 6 | 16 |
Recognized in Earnings | (12) | (18) |
Recognized in Other Comprehensive Income | 0 | 0 |
Acquisition | 0 | 0 |
Equity | 0 | 0 |
Other | (7) | 8 |
Deferred income tax liability (asset), ending balance | $ (13) | $ 6 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Effective Income Tax Rate (Details) - CAD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Taxes [Abstract] | ||||
Earnings before income tax | $ 1,528 | $ 1,742 | ||
Statutory tax rate | 26.70% | 27.00% | ||
Income tax at statutory rate | $ 408 | $ 470 | ||
Tax rate changes and foreign rate differential | (359) | (16) | ||
Changes in estimate and other | (16) | 9 | ||
Permanent items | 3 | 1 | ||
Income tax expense | 36 | 464 | [1] | |
Deferred tax income tax recovery | $ (305) | $ (345) | $ (1) | |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Details) - CAD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Taxes [Abstract] | ||||
Current tax expense | $ 210 | $ 70 | [1] | |
Deferred tax expense | ||||
Origination and reversal of temporary differences | 393 | 368 | ||
Tax rate changes on deferred tax balances | $ (305) | (345) | (1) | |
(Increase) decrease in tax loss carry forward | (222) | 27 | ||
For the years ended December 31 | (174) | 394 | [1] | |
Income tax expense | $ 36 | $ 464 | [1] | |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
INCOME TAXES - Deferred Tax Ite
INCOME TAXES - Deferred Tax Items Recovered Directly in Equity (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019CAD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017CAD ($) | |
Income Taxes [Abstract] | |||||
Share issue costs | $ (3,000,000) | $ (4,000,000) | |||
Other comprehensive income (loss) | 1,000,000 | 2,000,000 | |||
Deferred tax items recovered directly in equity | (2,000,000) | (2,000,000) | |||
Temporary differences associated with its investments in subsidiaries and interests in joint arrangements | 0 | 0 | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Unused tax losses for which no deferred tax asset recognised | (2,906,000,000) | (2,774,000,000) | $ (2,376,000,000) | ||
Benefit of loss carryforwards | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Unused tax losses for which no deferred tax asset recognised | (400,000,000) | (153,000,000) | $ (180,000,000) | ||
Benefit of loss carryforwards | United States | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Unused tax losses for which no deferred tax asset recognised | $ 1,100 | $ 221 | |||
Benefit of loss carryforwards | Canada | |||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||||
Unused tax losses for which no deferred tax asset recognised | $ 67,000,000 | $ 349,000,000 |
TRADE PAYABLES AND OTHER (Detai
TRADE PAYABLES AND OTHER (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |||
Trade payables | $ 717 | $ 519 | |
Other payables & accrued liabilities | 296 | 284 | |
Total trade payables and other | $ 1,013 | $ 803 | [1] |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Cash outflow for leases | $ 83 | |||
Additions to right-of-use assets | $ 113 | |||
Property, plant and equipment | 18,775 | 18,775 | $ 14,730 | [1] |
Undiscounted operating lease payments to be received | 1,356 | 1,356 | ||
Property, plant and equipment subject to operating leases | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Property, plant and equipment | 664 | 664 | $ 679 | |
Decommissioning Provisions | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Additions to right-of-use assets | 45 | |||
Kinder Morgan Canada Limited | Property, plant and equipment subject to operating leases | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Property, plant and equipment | 58 | 58 | ||
Undiscounted operating lease payments to be received | $ 175 | $ 175 | ||
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
LEASES - Right-of-use assets (D
LEASES - Right-of-use assets (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019CAD ($) | |
RIght-of-use Assets [Roll Forward] | |
Beginning balance, right-of-use assets | $ 427 |
Additions | 113 |
Acquisition (Note 6) | 348 |
Amortization | (66) |
Ending balance, right-of-use assets | 822 |
Terminals | |
RIght-of-use Assets [Roll Forward] | |
Beginning balance, right-of-use assets | 0 |
Additions | 0 |
Acquisition (Note 6) | 317 |
Amortization | 0 |
Ending balance, right-of-use assets | 317 |
Rail | |
RIght-of-use Assets [Roll Forward] | |
Beginning balance, right-of-use assets | 221 |
Additions | 54 |
Acquisition (Note 6) | 0 |
Amortization | (37) |
Ending balance, right-of-use assets | 238 |
Buildings | |
RIght-of-use Assets [Roll Forward] | |
Beginning balance, right-of-use assets | 127 |
Additions | 1 |
Acquisition (Note 6) | 7 |
Amortization | (17) |
Ending balance, right-of-use assets | 118 |
Land & Other | |
RIght-of-use Assets [Roll Forward] | |
Beginning balance, right-of-use assets | 79 |
Additions | 58 |
Acquisition (Note 6) | 24 |
Amortization | (12) |
Ending balance, right-of-use assets | $ 149 |
LEASES - Maturity of finance le
LEASES - Maturity of finance leases (Details) $ in Millions | Dec. 31, 2019CAD ($) |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Total undiscounted lease payments | $ 39 |
Unearned finance income | (4) |
Finance lease receivable | 35 |
Less than 1 Year | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Total undiscounted lease payments | 6 |
One to two years | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Total undiscounted lease payments | 7 |
Two to three years | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Total undiscounted lease payments | 6 |
Three to four years | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Total undiscounted lease payments | 4 |
Four to five years | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Total undiscounted lease payments | 4 |
More than 5 years | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Total undiscounted lease payments | $ 12 |
LEASES - Maturity of operating
LEASES - Maturity of operating leases (Details) $ in Millions | Dec. 31, 2019CAD ($) |
Disclosure of maturity analysis of operating lease payments [line items] | |
Undiscounted operating lease payments to be received | $ 1,356 |
Less than 1 Year | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Undiscounted operating lease payments to be received | 90 |
One to two years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Undiscounted operating lease payments to be received | 89 |
Two to three years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Undiscounted operating lease payments to be received | 89 |
Three to four years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Undiscounted operating lease payments to be received | 89 |
Four to five years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Undiscounted operating lease payments to be received | 89 |
More than 5 years | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Undiscounted operating lease payments to be received | $ 910 |
LOANS AND BORROWINGS - Carrying
LOANS AND BORROWINGS - Carrying Value, Terms and Conditions, and Debt Maturity Schedule (Details) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | Dec. 16, 2019CAD ($) | Sep. 12, 2019CAD ($) | May 31, 2019CAD ($) | Apr. 03, 2019CAD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||||||
Carrying value | $ 10,152,000,000 | $ 7,537,000,000 | |||||||
Less current portion | (74,000,000) | (480,000,000) | |||||||
Total non-current | 10,078,000,000 | 7,057,000,000 | [1] | ||||||
Senior unsecured credit facilities | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 3,020,000,000 | ||||||||
Nominal interest rate | 325.00% | 325.00% | |||||||
Carrying value | $ 2,097,000,000 | 1,305,000,000 | |||||||
Senior unsecured notes – series A | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 73,000,000 | $ 800,000,000 | |||||||
Nominal interest rate | 557.00% | 557.00% | |||||||
Carrying value | $ 74,000,000 | 76,000,000 | |||||||
Senior unsecured notes – series C | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 200,000,000 | ||||||||
Nominal interest rate | 558.00% | 558.00% | |||||||
Carrying value | $ 199,000,000 | 199,000,000 | |||||||
Senior unsecured notes – series D | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 0 | ||||||||
Nominal interest rate | 591.00% | 591.00% | |||||||
Carrying value | $ 0 | 267,000,000 | |||||||
Senior unsecured medium-term notes series 1 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 250,000,000 | ||||||||
Nominal interest rate | 489.00% | 489.00% | |||||||
Carrying value | $ 250,000,000 | 250,000,000 | |||||||
Senior unsecured medium-term notes series 2 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 450,000,000 | ||||||||
Nominal interest rate | 377.00% | 377.00% | |||||||
Carrying value | $ 449,000,000 | 449,000,000 | |||||||
Senior unsecured medium-term notes series 3 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 450,000,000 | ||||||||
Nominal interest rate | 475.00% | 475.00% | |||||||
Carrying value | $ 446,000,000 | 446,000,000 | |||||||
Senior unsecured medium-term notes series 4 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 600,000,000 | ||||||||
Nominal interest rate | 481.00% | 481.00% | |||||||
Carrying value | $ 596,000,000 | 596,000,000 | |||||||
Senior unsecured medium-term notes series 5 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 450,000,000 | ||||||||
Nominal interest rate | 354.00% | 354.00% | |||||||
Carrying value | $ 449,000,000 | 448,000,000 | |||||||
Senior unsecured medium-term notes series 6 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 500,000,000 | ||||||||
Nominal interest rate | 424.00% | 424.00% | |||||||
Carrying value | $ 498,000,000 | 498,000,000 | |||||||
Senior unsecured medium-term notes series 7 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 500,000,000 | ||||||||
Nominal interest rate | 371.00% | 371.00% | |||||||
Carrying value | $ 498,000,000 | 498,000,000 | |||||||
Senior unsecured medium-term notes series 8 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 650,000,000 | ||||||||
Nominal interest rate | 299.00% | 299.00% | |||||||
Carrying value | $ 646,000,000 | 646,000,000 | |||||||
Senior unsecured medium-term notes series 9 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 550,000,000 | ||||||||
Nominal interest rate | 474.00% | 474.00% | |||||||
Carrying value | $ 542,000,000 | 541,000,000 | |||||||
Senior unsecured medium-term notes series 10 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 400,000,000 | ||||||||
Nominal interest rate | 402.00% | 402.00% | |||||||
Carrying value | $ 398,000,000 | 398,000,000 | |||||||
Senior unsecured medium-term notes series 11 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 300,000,000 | ||||||||
Nominal interest rate | 475.00% | 475.00% | |||||||
Carrying value | $ 298,000,000 | 298,000,000 | |||||||
Senior unsecured medium-term notes series 12 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 400,000,000 | $ 400,000,000 | |||||||
Nominal interest rate | 362.00% | 362.00% | 3.62% | ||||||
Carrying value | $ 398,000,000 | 0 | |||||||
Senior unsecured medium-term notes series 13 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 700,000,000 | $ 300,000,000 | $ 400,000,000 | ||||||
Nominal interest rate | 454.00% | 454.00% | 4.54% | 4.54% | |||||
Carrying value | $ 714,000,000 | 0 | |||||||
Senior unsecured medium-term notes series 14 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 600,000,000 | $ 600,000,000 | |||||||
Nominal interest rate | 256.00% | 256.00% | 2.56% | ||||||
Carrying value | $ 598,000,000 | 0 | |||||||
Senior unsecured medium-term notes series 15 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 600,000,000 | $ 600,000,000 | |||||||
Nominal interest rate | 331.00% | 331.00% | 3.31% | ||||||
Carrying value | $ 597,000,000 | 0 | |||||||
Senior unsecured medium-term notes 3A | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 50,059,966 | ||||||||
Nominal interest rate | 505.00% | 505.00% | |||||||
Carrying value | $ 52,000,000 | 50,000,000 | |||||||
Senior unsecured medium-term notes 4A | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 0 | ||||||||
Nominal interest rate | 306.00% | 306.00% | |||||||
Carrying value | $ 0 | 205,000,000 | |||||||
Senior unsecured medium-term notes 5A | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 350,000,000 | ||||||||
Nominal interest rate | 343.00% | 343.00% | |||||||
Carrying value | $ 353,000,000 | 353,000,000 | |||||||
Finance lease liabilities and other | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Carrying value | 0 | $ 14,000,000 | |||||||
Revolving unsecured credit facility | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | 2,500,000,000 | ||||||||
Carrying value | $ 454,000,000 | $ 0 | |||||||
Term Loan | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 2,500,000,000 | ||||||||
Term Loan | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | 500,000,000 | $ 500,000,000 | |||||||
Operating facility | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Authorized | $ 20,000,000 | ||||||||
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
LOANS AND BORROWINGS - Narrativ
LOANS AND BORROWINGS - Narrative (Details) | Jan. 10, 2020CAD ($)tranche | Dec. 16, 2019CAD ($) | Sep. 12, 2019CAD ($)tranche | Apr. 03, 2019CAD ($)tranche | Dec. 31, 2019CAD ($) | Nov. 18, 2019CAD ($) | Sep. 19, 2019CAD ($) | Jun. 13, 2019CAD ($) | May 31, 2019CAD ($) |
Senior unsecured notes – series A | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 800,000,000 | $ 73,000,000 | |||||||
Number of tranches | tranche | 2 | ||||||||
Nominal interest rate | 557.00% | ||||||||
Senior unsecured medium-term notes series 12 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 400,000,000 | $ 400,000,000 | |||||||
Nominal interest rate | 3.62% | 362.00% | |||||||
Senior unsecured medium-term notes series 13 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 300,000,000 | $ 400,000,000 | $ 700,000,000 | ||||||
Nominal interest rate | 4.54% | 4.54% | 454.00% | ||||||
Term Loan | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 2,500,000,000 | ||||||||
Debt instrument, term (years) | 3 years | ||||||||
Term Loan | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 500,000,000 | $ 500,000,000 | |||||||
Notional amount repaid at maturity | $ 1,000,000,000 | ||||||||
Senior unsecured notes – series D | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 0 | ||||||||
Nominal interest rate | 591.00% | ||||||||
Notional amount repaid at maturity | $ 267,000,000 | ||||||||
Revolving unsecured credit facility | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 2,500,000,000 | ||||||||
Senior unsecured medium-term notes 4A | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 0 | ||||||||
Nominal interest rate | 306.00% | ||||||||
Notional amount repaid at maturity | $ 200,000,000 | ||||||||
Senior unsecured medium-term notes | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 1,500,000,000 | ||||||||
Number of tranches | tranche | 3 | ||||||||
Senior unsecured medium-term notes series 14 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 600,000,000 | $ 600,000,000 | |||||||
Nominal interest rate | 2.56% | 256.00% | |||||||
Senior unsecured medium-term notes series 15 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 600,000,000 | $ 600,000,000 | |||||||
Nominal interest rate | 3.31% | 331.00% | |||||||
Senior unsecured medium-term notes series 10 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 400,000,000 | ||||||||
Nominal interest rate | 402.00% | ||||||||
Senior unsecured medium-term notes series 11 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 300,000,000 | ||||||||
Nominal interest rate | 475.00% | ||||||||
Issuance of debt | Senior unsecured medium-term notes series 12 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 250,000,000 | ||||||||
Nominal interest rate | 3.62% | ||||||||
Issuance of debt | Senior unsecured medium-term notes | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 1,000,000,000 | ||||||||
Number of tranches | tranche | 3 | ||||||||
Issuance of debt | Senior unsecured medium-term notes series 10 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 250,000,000 | ||||||||
Nominal interest rate | 4.02% | ||||||||
Issuance of debt | Senior unsecured medium-term notes series 11 | Fixed rate instruments | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notional amount | $ 500,000,000 | ||||||||
Nominal interest rate | 4.75% |
DECOMISSIONING PROVISION - Deta
DECOMISSIONING PROVISION - Detailed Disclosure (Details) - CAD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Reconciliation of changes in other provisions [abstract] | ||||
Estimated economic lives of assets covered by the decommissioning provision (years) | 50 years | |||
Minimum | ||||
Reconciliation of changes in other provisions [abstract] | ||||
Estimated economic lives of assets covered by the decommissioning provision (years) | 1 year | |||
Maximum | ||||
Reconciliation of changes in other provisions [abstract] | ||||
Estimated economic lives of assets covered by the decommissioning provision (years) | 83 years | |||
Decommissioning provision | ||||
Reconciliation of changes in other provisions [abstract] | ||||
Other provisions, beginning balance | $ 573 | $ 551 | ||
Unwinding of discount rate | 14 | 12 | ||
Change in rates | 191 | 0 | ||
Acquisition (Note 6) | 74 | 0 | ||
Additions | 28 | 18 | ||
Change in cost estimates and other | (13) | (8) | ||
Other provisions, ending balance | $ 867 | 867 | 573 | |
Less current portion (included in accrued liabilities) | (3) | (3) | (4) | |
Other non-current provisions | $ 864 | 864 | $ 569 | |
Inflation rate for preset value (percent) | 1.80% | |||
Risk-free rate for preset value (percent) | 0.30% | 2.30% | ||
Risk-Free real return rate (percent) | 0.30% | |||
Kinder Morgan Canada Limited | Decommissioning provision | ||||
Reconciliation of changes in other provisions [abstract] | ||||
Change in rates | $ 135 |
SHARE CAPITAL - Narrative (Deta
SHARE CAPITAL - Narrative (Details) - CAD ($) $ / shares in Units, $ in Millions | Feb. 25, 2020 | Jan. 24, 2020 | Dec. 16, 2019 | Dec. 15, 2019 | Dec. 02, 2019 | Jun. 14, 2019 | Jun. 13, 2019 | Jun. 03, 2019 | Mar. 31, 2019 | Mar. 01, 2019 | Dec. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of classes of share capital [line items] | ||||||||||||||
Maximum number of preference shares issuable as a percentage of ordinary shares issued and outstanding | 25485085000.00% | |||||||||||||
Proportion of increase in dividends paid, percent | 5.00% | |||||||||||||
Monthly dividends paid per share (in CAD per share) | $ 0.21 | $ 0.20 | $ 0.20 | $ 0.19 | ||||||||||
Per share increase in dividend rate (in CAD per share) | $ 0.01 | |||||||||||||
Common share capital | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Number of shares outstanding (in shares) | 548,000,000 | 508,000,000 | 503,000,000 | |||||||||||
Dividends paid per share (in CAD per share) | $ 2.36 | $ 2.24 | ||||||||||||
Dividends declared | $ 1,213 | $ 1,131 | ||||||||||||
Common share capital | Major ordinary share transactions | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Monthly dividends paid per share (in CAD per share) | $ 0.21 | $ 0.21 | ||||||||||||
Dividends paid per share (in CAD per share) | $ 2.52 | $ 2.52 | ||||||||||||
Dividends declared | $ 115 | $ 115 | ||||||||||||
Preferred share capital | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Number of shares outstanding (in shares) | 122,000,000 | 100,000,000 | 100,000,000 | |||||||||||
Dividends declared | $ 126 | $ 122 | ||||||||||||
Class A, Series 1 Rate Reset Preference Shares | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Number of shares converted (in shares) | 0 | |||||||||||||
Number of shares outstanding (in shares) | 10,000,000 | |||||||||||||
Class A Series 3 Rate Reset Preference Shares | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Number of shares converted (in shares) | 0 | |||||||||||||
Number of shares outstanding (in shares) | 6,000,000 | |||||||||||||
Series 17 preferred share | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Number of shares converted (in shares) | 0 | |||||||||||||
Number of shares outstanding (in shares) | 6,000,000 | |||||||||||||
Dividends paid per share (in CAD per share) | $ 1.22 | $ 1.25 | ||||||||||||
Dividends declared | $ 7 | $ 8 | ||||||||||||
Series 5 preferred share | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Number of shares converted (in shares) | 0 | |||||||||||||
Number of shares outstanding (in shares) | 10,000,000 | |||||||||||||
Dividends paid per share (in CAD per share) | $ 1.19 | $ 1.25 | ||||||||||||
Dividends declared | $ 12 | $ 12 | ||||||||||||
Class A Series 7 Reset Preference Shares | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Number of shares converted (in shares) | 0 | |||||||||||||
Number of shares outstanding (in shares) | 10,000,000 |
SHARE CAPITAL - Common and Pref
SHARE CAPITAL - Common and Preferred Share Capital (Details) - CAD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of number of shares outstanding [abstract] | ||
Debenture conversions (Note 9) | $ 140 | |
Share-based payment transactions | $ 167 | $ 75 |
Common share capital | ||
Reconciliation of number of shares outstanding [abstract] | ||
Number of shares, Beginning balance (in shares) | 508 | 503 |
Debenture conversions (in shares) | 3 | |
Issued, net of issue costs (in shares) | 36 | |
Share-based payment transactions (in shares) | 4 | 2 |
Number of shares, Ending balance (in shares) | 548 | 508 |
Share capital, beginning balance | $ 13,662 | $ 13,447 |
Issued, net of issue costs | 1,710 | |
Debenture conversions (Note 9) | 140 | |
Share-based payment transactions | 75 | |
Share capital, ending balance | $ 15,539 | $ 13,662 |
Preferred share capital | ||
Reconciliation of number of shares outstanding [abstract] | ||
Number of shares, Beginning balance (in shares) | 100 | 100 |
Issued, net of issue costs (in shares) | 0 | 0 |
Number of shares, Ending balance (in shares) | 122 | 100 |
Share capital, beginning balance | $ 2,423 | $ 2,424 |
Issued, net of issue costs | 533 | (1) |
Part VI.1 tax | (3) | (1) |
Share capital, ending balance | $ 2,956 | $ 2,423 |
Class A Series 23 Preference Shares | ||
Reconciliation of number of shares outstanding [abstract] | ||
Issued, net of issue costs (in shares) | 12 | |
Issued, net of issue costs | $ 293 | |
Class A Series 25 Preference Shares | ||
Reconciliation of number of shares outstanding [abstract] | ||
Issued, net of issue costs (in shares) | 10 | |
Issued, net of issue costs | $ 243 |
SHARE CAPITAL - Dividends (Deta
SHARE CAPITAL - Dividends (Details) - CAD ($) $ / shares in Units, $ in Millions | Feb. 03, 2020 | Jan. 31, 2020 | Mar. 16, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Common share capital | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 1,213 | $ 1,131 | |||
Dividends paid per share (in CAD per share) | $ 2.36 | $ 2.24 | |||
Preferred share capital | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 126 | $ 122 | |||
Series 1 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 12 | $ 11 | |||
Dividends paid per share (in CAD per share) | $ 1.23 | $ 1.06 | |||
Series 3 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 7 | $ 7 | |||
Dividends paid per share (in CAD per share) | $ 1.13 | $ 1.18 | |||
Series 5 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 12 | $ 12 | |||
Dividends paid per share (in CAD per share) | $ 1.19 | $ 1.25 | |||
Series 7 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 11 | $ 11 | |||
Dividends paid per share (in CAD per share) | $ 1.12 | $ 1.13 | |||
Series 9 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 11 | $ 11 | |||
Dividends paid per share (in CAD per share) | $ 1.19 | $ 1.19 | |||
Series 11 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 10 | $ 10 | |||
Dividends paid per share (in CAD per share) | $ 1.44 | $ 1.44 | |||
Series 13 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 14 | $ 14 | |||
Dividends paid per share (in CAD per share) | $ 1.44 | $ 1.44 | |||
Series 15 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 9 | $ 9 | |||
Dividends paid per share (in CAD per share) | $ 1.12 | $ 1.12 | |||
Series 17 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 7 | $ 8 | |||
Dividends paid per share (in CAD per share) | $ 1.22 | $ 1.25 | |||
Series 19 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 10 | $ 10 | |||
Dividends paid per share (in CAD per share) | $ 1.25 | $ 1.25 | |||
Series 21 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 20 | $ 19 | |||
Dividends paid per share (in CAD per share) | $ 1.23 | $ 1.20 | |||
Series 23 preference share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 2 | $ 0 | |||
Dividends paid per share (in CAD per share) | $ 0.16 | ||||
Series 25 preference share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends paid | $ 1 | $ 0 | |||
Dividends paid per share (in CAD per share) | $ 0.16 | ||||
Major preference share transactions | Series 1 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.306625 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 3 | ||||
Major preference share transactions | Series 3 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.279875 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 2 | ||||
Major preference share transactions | Series 5 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.285813 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 3 | ||||
Major preference share transactions | Series 7 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.273750 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 3 | ||||
Major preference share transactions | Series 9 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.296875 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 3 | ||||
Major preference share transactions | Series 11 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.359375 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 2 | ||||
Major preference share transactions | Series 13 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.359375 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 4 | ||||
Major preference share transactions | Series 15 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.279000 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 2 | ||||
Major preference share transactions | Series 17 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.301313 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 2 | ||||
Major preference share transactions | Series 19 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.312500 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 3 | ||||
Major preference share transactions | Series 21 preferred share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.306250 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 5 | ||||
Major preference share transactions | Series 23 preference share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.328125 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 4 | ||||
Major preference share transactions | Series 25 preference share | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ 0.325000 | ||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 3 |
PERSONNEL EXPENSES (Details)
PERSONNEL EXPENSES (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Analysis of income and expense [abstract] | |||
Salaries and wages | $ 304 | $ 254 | |
Share-based compensation expense (Note 23) | 66 | 63 | [1] |
Short-term incentive plan | 64 | 59 | |
Pension plan expense | 25 | 23 | |
Health, savings plan and other benefits | 30 | 21 | |
Personnel expenses | $ 489 | $ 420 | |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
REVENUE - Revenue Disaggregatio
REVENUE - Revenue Disaggregation (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | $ 7,138 | $ 7,273 | |
Lease and other revenue | 92 | 78 | |
Revenue | 7,230 | 7,351 | [1] |
Pipelines | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 1,587 | 1,403 | |
Lease and other revenue | 63 | 61 | |
Revenue | 1,650 | 1,464 | |
Facilities | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 747 | 695 | |
Lease and other revenue | 29 | 17 | |
Revenue | 776 | 712 | |
Marketing & New Ventures | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 4,804 | 5,175 | |
Lease and other revenue | 0 | 0 | |
Revenue | 4,804 | 5,175 | |
Take-or-Pay | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 1,825 | 1,561 | |
Take-or-Pay | Pipelines | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 1,200 | 979 | |
Take-or-Pay | Facilities | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 625 | 582 | |
Take-or-Pay | Marketing & New Ventures | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 0 | 0 | |
Fee-for-Service | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 504 | 527 | |
Fee-for-Service | Pipelines | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 387 | 424 | |
Fee-for-Service | Facilities | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 117 | 103 | |
Fee-for-Service | Marketing & New Ventures | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 0 | 0 | |
Product Sales | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 4,809 | 5,185 | |
Product Sales | Pipelines | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 0 | 0 | |
Product Sales | Facilities | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 5 | 10 | |
Product Sales | Marketing & New Ventures | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | $ 4,804 | $ 5,175 | |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
REVENUE - Contract Balances (De
REVENUE - Contract Balances (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Contract balances [Line Items] | |||
Opening balance | $ 168 | $ 157 | |
Additions (net in the period) | 39 | 38 | |
Acquisition (Note 6) | 77 | 0 | |
Revenue recognized from contract liabilities | (53) | (27) | |
Closing balance | 231 | 168 | |
Less current portion | (39) | (37) | [1] |
Ending balance | 192 | 131 | [1] |
Take-or-Pay | |||
Contract balances [Line Items] | |||
Opening balance | 9 | 8 | |
Additions (net in the period) | 4 | 5 | |
Acquisition (Note 6) | 0 | 0 | |
Revenue recognized from contract liabilities | (5) | (4) | |
Closing balance | 8 | 9 | |
Less current portion | (8) | (9) | |
Ending balance | 0 | 0 | |
Other Contract Liabilities | |||
Contract balances [Line Items] | |||
Opening balance | 159 | 149 | |
Additions (net in the period) | 35 | 33 | |
Acquisition (Note 6) | 77 | 0 | |
Revenue recognized from contract liabilities | (48) | (23) | |
Closing balance | 223 | 159 | |
Less current portion | (31) | (28) | |
Ending balance | $ 192 | $ 131 | |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | $ 9,300 | $ 10,300 |
Maximum | Not Later Than Five Years | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 1,100 | 1,100 |
Maximum | Later Than Five Years Not Later Than Twenty Two Years | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 977 | 1,000 |
Minimum | Not Later Than Five Years | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | 983 | 964 |
Minimum | Later Than Five Years Not Later Than Twenty Two Years | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Transaction price allocated to remaining performance obligations | $ 13 | $ 8 |
NET FINANCE COSTS (Details)
NET FINANCE COSTS (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest expense on financial liabilities measured at amortized cost: | ||
Loans and borrowings | $ 291 | $ 268 |
Convertible debentures | 0 | 6 |
Leases | 17 | 0 |
Unwinding of discount rate | 13 | 12 |
Finance lease income | (1) | 0 |
Loss in fair value of non-commodity-related derivative financial instruments | (4) | (4) |
Gains (Losses) on Exchange Differences on Translation and Other, Net of Tax | 22 | 3 |
Net finance costs | $ 294 | $ 279 |
NET FINANCE COSTS - Narrative (
NET FINANCE COSTS - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Analysis of income and expense [abstract] | |||
Net interest paid | $ 311 | $ 294 | |
Interest paid during construction | $ 42 | $ 35 | [1] |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
OPERATING SEGMENTS - Narrative
OPERATING SEGMENTS - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019CAD ($)segment | Dec. 31, 2018CAD ($) | ||
Operating Segments [Abstract] | |||
Number of operating segments | segment | 3 | ||
Disclosure of operating segments [line items] | |||
Revenue | $ 7,230 | $ 7,351 | [1] |
United States | |||
Disclosure of operating segments [line items] | |||
Revenue | 215 | 265 | |
Customer 1 | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue | $ 718 | $ 792 | |
Percentage of entity's revenue | 10.00% | ||
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
OPERATING SEGMENTS - Financial
OPERATING SEGMENTS - Financial Information by Segment (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of operating segments [line items] | |||
Revenue | $ 7,230 | $ 7,351 | [1] |
Operating expenses | 602 | 551 | |
Cost of goods sold, including product purchases | 4,110 | 4,515 | |
Realized gain on commodity-related derivative financial instruments | (33) | 51 | |
Share of profit from equity accounted investees (Note 10) | 370 | 411 | [1] |
Depreciation and amortization included in operations | 475 | 391 | |
Unrealized loss (gain) on commodity-related derivative financial instruments | 13 | (73) | [2] |
Net finance costs (income) | 2,433 | 2,327 | [1] |
Depreciation included in general and administrative | 36 | 26 | |
Other general and administrative | 260 | 253 | |
Other expense | 15 | 27 | [1] |
Impairment of investment in equity accounted investees | 300 | 0 | [1],[2] |
Results from operating activities | 1,822 | 2,021 | [1] |
Net finance costs (income) | 294 | 279 | |
Earnings before income tax | 1,528 | 1,742 | [1] |
Capital expenditures | 1,645 | 1,226 | |
Contributions to equity accounted investees | 263 | 58 | |
Pipelines | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,650 | 1,464 | |
Facilities | |||
Disclosure of operating segments [line items] | |||
Revenue | 776 | 712 | |
Marketing & New Ventures | |||
Disclosure of operating segments [line items] | |||
Revenue | 4,804 | 5,175 | |
Operating segments | Pipelines | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,650 | 1,464 | |
Operating expenses | 436 | 396 | |
Share of profit from equity accounted investees (Note 10) | 270 | 279 | |
Depreciation and amortization included in operations | 245 | 216 | |
Net finance costs (income) | 1,376 | 1,255 | |
Other general and administrative | 30 | 26 | |
Other expense | 3 | ||
Impairment of investment in equity accounted investees | 300 | ||
Results from operating activities | 1,043 | 1,229 | |
Net finance costs (income) | 9 | 9 | |
Earnings before income tax | 1,034 | 1,220 | |
Capital expenditures | 892 | 711 | |
Contributions to equity accounted investees | 13 | ||
Operating segments | Facilities | |||
Disclosure of operating segments [line items] | |||
Revenue | 776 | 712 | |
Operating expenses | 344 | 313 | |
Cost of goods sold, including product purchases | 4 | 8 | |
Share of profit from equity accounted investees (Note 10) | 50 | 30 | |
Depreciation and amortization included in operations | 168 | 149 | |
Net finance costs (income) | 655 | 574 | |
Other general and administrative | 14 | 17 | |
Other expense | 5 | ||
Results from operating activities | 641 | 552 | |
Net finance costs (income) | 23 | 6 | |
Earnings before income tax | 618 | 546 | |
Capital expenditures | 569 | 348 | |
Contributions to equity accounted investees | 73 | 56 | |
Operating segments | Marketing & New Ventures | |||
Disclosure of operating segments [line items] | |||
Revenue | 4,804 | 5,175 | |
Cost of goods sold, including product purchases | 4,417 | 4,789 | |
Realized gain on commodity-related derivative financial instruments | (33) | 51 | |
Share of profit from equity accounted investees (Note 10) | 50 | 102 | |
Depreciation and amortization included in operations | 51 | 26 | |
Unrealized loss (gain) on commodity-related derivative financial instruments | 13 | (73) | |
Net finance costs (income) | 406 | 484 | |
Other general and administrative | 35 | 41 | |
Other expense | 3 | 12 | |
Results from operating activities | 368 | 431 | |
Net finance costs (income) | (8) | 16 | |
Earnings before income tax | 376 | 415 | |
Capital expenditures | 157 | 134 | |
Contributions to equity accounted investees | 177 | 2 | |
Corporate & Inter-Division Eliminations | |||
Disclosure of operating segments [line items] | |||
Revenue | (482) | (426) | |
Operating expenses | (178) | (158) | |
Cost of goods sold, including product purchases | (311) | (282) | |
Depreciation and amortization included in operations | 11 | ||
Net finance costs (income) | (4) | 14 | |
Depreciation included in general and administrative | 36 | 26 | |
Other general and administrative | 181 | 169 | |
Other expense | 9 | 10 | |
Results from operating activities | (230) | (191) | |
Net finance costs (income) | 270 | 248 | |
Earnings before income tax | (500) | (439) | |
Capital expenditures | 27 | 33 | |
Corporate & Inter-Division Eliminations | Pipelines | |||
Disclosure of operating segments [line items] | |||
Revenue | 137 | 124 | |
Corporate & Inter-Division Eliminations | Facilities | |||
Disclosure of operating segments [line items] | |||
Revenue | 345 | 302 | |
Operating Segments and Corporate & Inter-Division Eliminations | Pipelines | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,787 | 1,588 | |
Operating Segments and Corporate & Inter-Division Eliminations | Facilities | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,121 | 1,014 | |
Operating Segments and Corporate & Inter-Division Eliminations | Marketing & New Ventures | |||
Disclosure of operating segments [line items] | |||
Revenue | $ 4,804 | $ 5,175 | |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. | ||
[2] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
OPERATING SEGMENTS - Non-Curren
OPERATING SEGMENTS - Non-Current Assets (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of operating segments [line items] | ||
Non-current assets | $ 32,165 | $ 25,651 |
Canada | ||
Disclosure of operating segments [line items] | ||
Non-current assets | 26,596 | 20,936 |
United States | ||
Disclosure of operating segments [line items] | ||
Non-current assets | $ 5,569 | $ 4,715 |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - CAD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Earnings per share [abstract] | |||
Earnings attributable to common shareholders | $ 1,361 | $ 1,153 | |
Weighted average number of common shares (in shares) | 512 | 505 | [1] |
Profit (loss), attributable to ordinary equity holders of parent entity including dilutive effects | $ 1,361 | $ 1,157 | [1] |
Adjusted weighted average number of ordinary shares outstanding (in shares) | 514 | 509 | [1] |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
EARNINGS PER COMMON SHARE - Ear
EARNINGS PER COMMON SHARE - Earnings Attributable to Common Shareholders (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Earnings per share [abstract] | |||
Earnings | $ 1,492 | $ 1,278 | [1],[2] |
Dividends on preferred shares | (123) | (122) | |
Cumulative dividends on preferred shares, not yet declared | (8) | (3) | |
Basic earnings attributable to common shareholders | 1,361 | 1,153 | |
Effect of after-tax interest on debentures to earnings | 0 | 4 | |
Diluted earnings attributable to common shareholders | $ 1,361 | $ 1,157 | [1] |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. | ||
[2] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
EARNINGS PER COMMON SHARE - Wei
EARNINGS PER COMMON SHARE - Weighted Average Number of Common Shares (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Earnings per share [abstract] | |||
Number of shares issued (in shares) | 508 | 503 | |
Effect of shares issued (in shares) | 1 | 0 | |
Effect of shares issued on exercise of options (in shares) | 3 | 1 | |
Effect of conversion of convertible debentures (in shares) | 0 | 1 | |
Weighted average number of common shares at December 31 (basic) (in shares) | 512 | 505 | [1] |
Dilutive effect of debentures converted (in shares) | 0 | 2 | |
Dilutive effect of share options on issue (in shares) | 2 | 2 | |
Weighted average number of common shares at December 31 (diluted) (in shares) | 514 | 509 | [1] |
Basic earnings per common share (in CAD per share) | $ 2.66 | $ 2.28 | [1] |
Diluted earnings per common share (in CAD per share) | $ 2.65 | $ 2.28 | [1] |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
PENSION PLAN - Employee Benefit
PENSION PLAN - Employee Benefit Obligations (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of defined benefit plans [line items] | ||
Net employee benefit obligations | $ 35 | $ 31 |
Registered Plans | ||
Disclosure of defined benefit plans [line items] | ||
Net employee benefit obligations | 19 | 19 |
Supplemental Plan | ||
Disclosure of defined benefit plans [line items] | ||
Net employee benefit obligations | $ 16 | $ 12 |
PENSION PLAN - Narrative (Detai
PENSION PLAN - Narrative (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Net employee benefit obligations | $ 35,000,000 | $ 31,000,000 | |
Post-employment benefit expense, defined contribution plans | $ 11,000,000 | 8,000,000 | |
Number of best years of earnings (years) | 3 years | ||
Number of years of service (years) | 10 years | ||
Decrease in defined benefit plan related to present value of refunds or reductions in future contributions | $ 0 | 0 | |
Pension plan expense | $ 25,000,000 | 23,000,000 | |
Estimated discount rate (percent) | 3.10% | ||
Increase (decrease) of estimated discount rate (percent) | 1 | ||
Expected future contributions to plan in 2020 | $ 21,000,000 | ||
Younger Plan | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net employee benefit obligations | $ 6,000,000 | ||
Registered Plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net employee benefit obligations | 19,000,000 | 19,000,000 | |
Pension plan expense | 15,000,000 | 15,000,000 | |
Supplemental Plan | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net employee benefit obligations | 16,000,000 | 12,000,000 | |
Plan assets | Registered Plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Contributions paid into the plan | $ (20,000,000) | (19,000,000) | |
Minimum | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employer contributions percent | 5.00% | ||
Maximum | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Employer contributions percent | 10.00% | ||
Employee's age plus years of service | 50 years | ||
Maximum | Supplemental Plan | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Pension plan expense | $ 2,000,000 | $ 2,000,000 |
PENSION PLAN - Defined Benefit
PENSION PLAN - Defined Benefit Obligations (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Registered Plans | ||
Disclosure of defined benefit plans [line items] | ||
Total present value of obligations | $ 250 | $ 212 |
Fair value of plan assets | 231 | 193 |
Recognized liability for defined benefit obligations | (19) | (19) |
Supplemental Plan | ||
Disclosure of defined benefit plans [line items] | ||
Total present value of obligations | 16 | 12 |
Fair value of plan assets | 0 | 0 |
Recognized liability for defined benefit obligations | $ (16) | $ (12) |
PENSION PLAN - Plan Assets (Det
PENSION PLAN - Plan Assets (Details) - Registered Plans | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value of plan assets [line items] | ||
Equity securities | 62.00% | 61.00% |
Debt | 38.00% | 39.00% |
Total | 100.00% | 100.00% |
PENSION PLAN - Movement in Plan
PENSION PLAN - Movement in Plan (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Registered Plans | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Current service costs | $ 15 | $ 14 |
Return on plan assets | 8 | 7 |
Interest expense (income) | 8 | 8 |
Registered Plans | Present value of defined benefit obligation | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | 212 | 192 |
Benefits paid by the plan | 12 | 12 |
Current service costs | 15 | 14 |
Interest expense (income) | 8 | 7 |
Transfer from Younger | 0 | 16 |
Actuarial losses (gains) in other comprehensive income | 27 | (5) |
Net defined benefit liability (asset), ending balance | 250 | 212 |
Registered Plans | Plan assets | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | (193) | (182) |
Contributions paid into the plan | 20 | 19 |
Benefits paid by the plan | (12) | (12) |
Return on plan assets | 22 | (13) |
Interest expense (income) | 8 | 7 |
Transfer from Younger | 0 | (10) |
Net defined benefit liability (asset), ending balance | (231) | (193) |
Supplemental Plan | Present value of defined benefit obligation | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | 12 | 11 |
Benefits paid by the plan | 0 | 0 |
Current service costs | 1 | 1 |
Interest expense (income) | 0 | 0 |
Transfer from Younger | 0 | 0 |
Actuarial losses (gains) in other comprehensive income | 3 | 0 |
Net defined benefit liability (asset), ending balance | $ 16 | $ 12 |
PENSION PLAN - Expense Recogniz
PENSION PLAN - Expense Recognized in Earnings (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Pension plan expense | $ 25 | $ 23 |
Registered Plans | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Current service costs | 15 | 14 |
Interest on obligation | 8 | 8 |
Expected return on plan assets | (8) | (7) |
Pension plan expense | 15 | 15 |
Registered Plans | Operating expenses | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Pension plan expense | 7 | 8 |
Registered Plans | General and administrative expense | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Pension plan expense | $ 8 | $ 7 |
PENSION PLAN - Actuarial Gains
PENSION PLAN - Actuarial Gains and Losses Recognized in OCI (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Actuarial effect in other comprehensive income | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | $ 29 | $ 23 |
Actuarial gain (loss) arising from | ||
Financial assumptions | (22) | 3 |
Experience adjustments | 0 | 0 |
Return on plan assets excluding interest income | 16 | (9) |
Recognized loss during the period after tax | (6) | (6) |
Net defined benefit liability (asset), ending balance | 35 | 29 |
Registered Plans | ||
Actuarial gain (loss) arising from | ||
Return on plan assets excluding interest income | (8) | (7) |
Registered Plans | Actuarial effect in other comprehensive income | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | 28 | 22 |
Actuarial gain (loss) arising from | ||
Financial assumptions | (21) | 3 |
Experience adjustments | 0 | 0 |
Return on plan assets excluding interest income | 16 | (9) |
Recognized loss during the period after tax | (5) | (6) |
Net defined benefit liability (asset), ending balance | 33 | 28 |
Supplemental Plan | Actuarial effect in other comprehensive income | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | 1 | 1 |
Actuarial gain (loss) arising from | ||
Financial assumptions | (1) | 0 |
Experience adjustments | 0 | 0 |
Return on plan assets excluding interest income | 0 | 0 |
Recognized loss during the period after tax | (1) | 0 |
Net defined benefit liability (asset), ending balance | $ 2 | $ 1 |
PENSION PLAN - Actuarial Assump
PENSION PLAN - Actuarial Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Benefits [Abstract] | ||
Discount rate | 3.10% | 3.80% |
Future pension earning increases | 4.00% | 4.00% |
Current male pensioners at age 65 | ||
Disclosure of defined benefit plans [line items] | ||
Assumptions regarding mortality longevities (in years) | 21 years 9 months 18 days | 21 years 8 months 12 days |
Current female pensioners at age 65 | ||
Disclosure of defined benefit plans [line items] | ||
Assumptions regarding mortality longevities (in years) | 24 years 2 months 12 days | 24 years 1 month 6 days |
Current male members at age 45 | ||
Disclosure of defined benefit plans [line items] | ||
Assumptions regarding mortality longevities (in years) | 22 years 9 months 18 days | 22 years 9 months 18 days |
Current female members at age 45 | ||
Disclosure of defined benefit plans [line items] | ||
Assumptions regarding mortality longevities (in years) | 25 years 1 month 6 days | 25 years 1 month 6 days |
SHARE-BASED PAYMENTS - Narrativ
SHARE-BASED PAYMENTS - Narrative (Details) | Nov. 12, 2019shares | Oct. 08, 2019shares | Aug. 14, 2019shares | Jul. 09, 2019shares | Apr. 08, 2019shares | Mar. 05, 2019shares | Jan. 01, 2019shares | Dec. 31, 2018shares$ / shares | Nov. 13, 2018shares | Oct. 10, 2018shares | Aug. 15, 2018shares | Jul. 10, 2018shares | May 14, 2018shares | Mar. 06, 2018shares | Jan. 01, 2018shares | Dec. 31, 2019shares$ / shares | Dec. 31, 2018shares$ / shares |
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Trading days prior to redemption date | 5 days | ||||||||||||||||
Weighted average share price at the date of exercise for share options exercised (in CAD per share) | $ / shares | $ 48.87 | $ 44.97 | |||||||||||||||
Measurement period for weighted average exercise price of lon-term share unit award incentive plans | 20 days | ||||||||||||||||
Weighted average exercise price long-term share unit award incentive plans (in CAD per share) | $ / shares | $ 42.89 | $ 47.52 | $ 42.89 | ||||||||||||||
Number of share options granted in share-based payment arrangement | 1,145,000 | 97,000 | 1,162,000 | 249,000 | 367,000 | 2,409,000 | 34,000 | 939,000 | 94,000 | 961,000 | 424,000 | 310,000 | 1,993,000 | 5,470,000 | 4,755,000 | ||
Number of other equity instruments granted in share-based payment arrangement | 971,000 | 843,000 | |||||||||||||||
Minimum | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
DSUs as a percent of total director compensation | 50.00% | ||||||||||||||||
Share-based Compensation Award, Tranche One | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of share options granted in share-based payment arrangement | 0.3333 | ||||||||||||||||
Share-based Compensation Award, Tranche Two | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of share options granted in share-based payment arrangement | 0.3333 | ||||||||||||||||
Share-based Compensation Award, Tranche Three | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of share options granted in share-based payment arrangement | 0.3333 | ||||||||||||||||
PSUs | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of other equity instruments granted in share-based payment arrangement | 475,000 | 404,000 | |||||||||||||||
Weighted average remaining contractual life of outstanding other equity instruments (years) | 3 years | ||||||||||||||||
RSUs | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of other equity instruments granted in share-based payment arrangement | 460,000 | 395,000 | |||||||||||||||
RSUs | Share-based Compensation Award, Tranche One | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of other equity instruments granted in share-based payment arrangement | 0.3333 | ||||||||||||||||
RSUs | Share-based Compensation Award, Tranche Two | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of other equity instruments granted in share-based payment arrangement | 0.3333 | ||||||||||||||||
RSUs | Share-based Compensation Award, Tranche Three | |||||||||||||||||
Disclosure of range of exercise prices of outstanding share options [line items] | |||||||||||||||||
Number of other equity instruments granted in share-based payment arrangement | 0.3333 |
SHARE-BASED PAYMENTS - Grand Da
SHARE-BASED PAYMENTS - Grand Date Share Options Granted to Employees (Details) shares in Thousands | Nov. 12, 2019sharesyear | Oct. 08, 2019sharesyear | Aug. 14, 2019sharesyear | Jul. 09, 2019sharesyear | Apr. 08, 2019sharesyear | Mar. 05, 2019sharesyear | Dec. 31, 2018sharesyear | Nov. 13, 2018sharesyear | Oct. 10, 2018sharesyear | Aug. 15, 2018sharesyear | Jul. 10, 2018sharesyear | May 14, 2018sharesyear | Mar. 06, 2018sharesyear | Dec. 31, 2019shares | Dec. 31, 2018sharesyear |
Share-based Payment Arrangements [Abstract] | |||||||||||||||
Granted (in shares) | shares | 1,145 | 97 | 1,162 | 249 | 367 | 2,409 | 34 | 939 | 94 | 961 | 424 | 310 | 1,993 | 5,470 | 4,755 |
Contractual Life of Options | year | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 |
SHARE-BASED PAYMENTS - Long-ter
SHARE-BASED PAYMENTS - Long-term Share Unit Aware Incentive Plan (Details) - shares shares in Thousands | Jan. 01, 2019 | Jan. 01, 2018 |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 971 | 843 |
PSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 475 | 404 |
RSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 460 | 395 |
DSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of long-term share units granted (in shares) | 36 | 44 |
SHARE-BASED PAYMENTS - Share Op
SHARE-BASED PAYMENTS - Share Option Plan (Details) shares in Thousands | Nov. 12, 2019shares | Oct. 08, 2019shares | Aug. 14, 2019shares | Jul. 09, 2019shares | Apr. 08, 2019shares | Mar. 05, 2019shares | Dec. 31, 2018shares$ / shares | Nov. 13, 2018shares | Oct. 10, 2018shares | Aug. 15, 2018shares | Jul. 10, 2018shares | May 14, 2018shares | Mar. 06, 2018shares | Dec. 31, 2019shares$ / shares | Dec. 31, 2018shares$ / shares |
Share-based Payment Arrangements [Abstract] | |||||||||||||||
Options outstanding, beginning balance (in shares) | shares | 17,928 | 15,677 | |||||||||||||
Granted (in shares) | shares | 1,145 | 97 | 1,162 | 249 | 367 | 2,409 | 34 | 939 | 94 | 961 | 424 | 310 | 1,993 | 5,470 | 4,755 |
Exercised (in shares) | shares | (3,979) | (1,729) | |||||||||||||
Forfeited (in shares) | shares | (655) | (523) | |||||||||||||
Expired (in shares) | shares | (180) | (252) | |||||||||||||
Options outstanding, ending balance (in shares) | shares | 17,928 | 18,584 | 17,928 | ||||||||||||
Weighted average exercise price, outstanding, beginning balance (in CAD per share) | $ / shares | $ 42.12 | $ 40.94 | |||||||||||||
Weighted average exercise price of share options granted in share-based payment arrangement (in CAD per share) | $ / shares | 48.27 | 43.86 | |||||||||||||
Weighted average exercise price of share options exercised in share-based payment arrangement (in CAD per share) | $ / shares | 37.95 | 35.34 | |||||||||||||
Weighted average exercise price of share options forfeited in share-based payment arrangement (in CAD per share) | $ / shares | 45.29 | 41.56 | |||||||||||||
Weighted average exercise price of share options expired in share-based payment arrangement (in CAD per share) | $ / shares | 48.98 | 49.20 | |||||||||||||
Weighted average exercise price, outstanding, ending balance (in CAD per share) | $ / shares | $ 42.12 | $ 44.65 | $ 42.12 |
SHARE-BASED PAYMENTS - Exercise
SHARE-BASED PAYMENTS - Exercise Price Range of Outstanding Share Options (Details) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019shares$ / shares | Dec. 31, 2018shares | Dec. 31, 2017shares | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 18,584 | 17,928 | 15,677 |
Options Exercisable (in shares) | 9,550 | ||
Weighted average remaining life (in years) | 4 years 6 months | ||
$29.60 – $41.38 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 3,466 | ||
Options Exercisable (in shares) | 3,426 | ||
Weighted average remaining life (in years) | 3 years 1 month 6 days | ||
$41.39 – $43.21 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 3,524 | ||
Options Exercisable (in shares) | 1,618 | ||
Weighted average remaining life (in years) | 4 years 8 months 12 days | ||
$43.22 – $46.00 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 3,491 | ||
Options Exercisable (in shares) | 2,170 | ||
Weighted average remaining life (in years) | 4 years 2 months 12 days | ||
$46.01 – $48.59 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 4,350 | ||
Options Exercisable (in shares) | 279 | ||
Weighted average remaining life (in years) | 6 years 2 months 12 days | ||
$48.60 – $52.01 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding (in shares) | 3,753 | ||
Options Exercisable (in shares) | 2,057 | ||
Weighted average remaining life (in years) | 3 years 10 months 24 days | ||
Minimum | $29.60 – $41.38 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 29.60 | ||
Minimum | $41.39 – $43.21 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 41.39 | ||
Minimum | $43.22 – $46.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 43.22 | ||
Minimum | $46.01 – $48.59 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 46.01 | ||
Minimum | $48.60 – $52.01 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 48.60 | ||
Maximum | $29.60 – $41.38 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 41.38 | ||
Maximum | $41.39 – $43.21 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 43.21 | ||
Maximum | $43.22 – $46.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 46 | ||
Maximum | $46.01 – $48.59 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | 48.59 | ||
Maximum | $48.60 – $52.01 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ / shares | $ 52.01 |
SHARE-BASED PAYMENTS - Share _2
SHARE-BASED PAYMENTS - Share Options Granted (Details) | 12 Months Ended | |
Dec. 31, 2019CAD ($)year | Dec. 31, 2018CAD ($)year | |
Share-based Payment Arrangements [Abstract] | ||
Weighted average fair value at grant date | $ 4.12 | $ 3.86 |
Weighted average expected volatility (percent) | 18.70% | 20.30% |
Weighted average expected option life (years) | year | 3.67 | 3.67 |
Expected annual dividends per option | $ 2.36 | $ 2.24 |
Expected forfeitures (percent) | 6.60% | 6.70% |
Risk-free interest rate (based on government bonds)(percent) | 1.60% | 2.10% |
SHARE-BASED PAYMENTS - Employee
SHARE-BASED PAYMENTS - Employee Expenses (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangements [Abstract] | ||
Share option plan, equity settled | $ 16 | $ 14 |
Long-term share unit award incentive plan | 50 | 49 |
Share-based compensation expense | 66 | 63 |
Total carrying amount of liabilities for cash settled arrangements | 95 | 96 |
Total intrinsic value of liability for vested benefits | $ 57 | $ 57 |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Instruments [Abstract] | ||
Letters of credit outstanding, amount | $ 90,000,000 | $ 122,000,000 |
Trade receivables, current percentage | 95.00% | 99.00% |
Allowance account for credit losses of financial assets | $ 0 | $ 1,000,000 |
Expense recognised during period for bad and doubtful debts | $ 1,000,000 | $ 1,000,000 |
FINANCIAL INSTRUMENTS - Aging o
FINANCIAL INSTRUMENTS - Aging of Trade and Other Receivables (Details) - Trade receivables and other - Financial assets past due but not impaired - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | $ 8 | $ 2 |
31-60 days past due | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 1 | 2 |
Greater than 61 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | $ 7 | $ 0 |
FINANCIAL INSTRUMENTS - Liquidi
FINANCIAL INSTRUMENTS - Liquidity Risk (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial liabilities | $ 9 | ||
Derivative financial liabilities, Expected Cash Flows | 9 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Trade payables and other | 1,013 | $ 803 | [1] |
Loans and borrowings | 10,152 | 7,537 | |
Dividends payable | 110 | $ 97 | [1] |
Lease liabilities | 819 | ||
Trade payables and accrued liabilities, Expected Cash Flows | 1,013 | ||
Loans and borrowings, Expected Cash Flows | 14,565 | ||
Dividends payable, Expected Cash Flows | 110 | ||
Finance leases, Expected Cash Flows | 1,152 | ||
Less than 1 Year | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial liabilities, Expected Cash Flows | 9 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Trade payables and accrued liabilities, Expected Cash Flows | 1,013 | ||
Loans and borrowings, Expected Cash Flows | 477 | ||
Dividends payable, Expected Cash Flows | 110 | ||
Finance leases, Expected Cash Flows | 130 | ||
1 - 3 Years | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial liabilities, Expected Cash Flows | 0 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Trade payables and accrued liabilities, Expected Cash Flows | 0 | ||
Loans and borrowings, Expected Cash Flows | 2,379 | ||
Dividends payable, Expected Cash Flows | 0 | ||
Finance leases, Expected Cash Flows | 237 | ||
3 - 5 Years | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial liabilities, Expected Cash Flows | 0 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Trade payables and accrued liabilities, Expected Cash Flows | 0 | ||
Loans and borrowings, Expected Cash Flows | 3,337 | ||
Dividends payable, Expected Cash Flows | 0 | ||
Finance leases, Expected Cash Flows | 179 | ||
More than 5 years | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Derivative financial liabilities, Expected Cash Flows | 0 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Trade payables and accrued liabilities, Expected Cash Flows | 0 | ||
Loans and borrowings, Expected Cash Flows | 8,372 | ||
Dividends payable, Expected Cash Flows | 0 | ||
Finance leases, Expected Cash Flows | $ 606 | ||
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
FINANCIAL INSTRUMENTS - Interes
FINANCIAL INSTRUMENTS - Interest Rate Risk (Details) - CAD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed rate instruments | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
As at December 31 | $ 8,874,000,000 | $ 6,232,000,000 |
Variable rate instruments | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
As at December 31 | 2,097,000,000 | 1,305,000,000 |
Fixed interest rates under derivative contracts, portion of underlying instrument | 0 | 0 |
Fixed and variable rate instruments | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
As at December 31 | $ 10,971,000,000 | $ 7,537,000,000 |
FINANCIAL INSTRUMENTS - Cash Fl
FINANCIAL INSTRUMENTS - Cash Flow Sensitivity Analysis for Variable Rate Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments [Abstract] | ||
Percentage of reasonably possible increase in interest rate | 1.00% | 1.00% |
Increase (decrease) in earnings due to reasonably possible increase in interest rate assumption | $ 9 | $ 13 |
Percentage of reasonably possible decrease in interest rate | (1.00%) | (1.00%) |
Increase (decrease) in earnings due to reasonably possible decrease in interest rate assumption | $ (9) | $ (13) |
FINANCIAL INSTRUMENTS - Fair Va
FINANCIAL INSTRUMENTS - Fair Value of Financial Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Advances to related parties and other assets | |||
Disclosure of financial assets [line items] | |||
Advances to related parties and other assets (Note 27) | $ 43 | ||
Derivative financial instruments | Financial liabilities carried at fair value | |||
Disclosure of financial liabilities [line items] | |||
Carrying Value | $ 9 | $ 6 | |
Derivative financial instruments | Financial liabilities carried at fair value | Level 1 | |||
Disclosure of financial liabilities [line items] | |||
Fair Value | 0 | 0 | |
Derivative financial instruments | Financial liabilities carried at fair value | Level 2 | |||
Disclosure of financial liabilities [line items] | |||
Fair Value | 9 | 6 | |
Derivative financial instruments | Financial liabilities carried at fair value | Level 3 | |||
Disclosure of financial liabilities [line items] | |||
Fair Value | 0 | 0 | |
Loans and borrowings | Financial liabilities carried at amortized cost | |||
Disclosure of financial liabilities [line items] | |||
Carrying Value | 10,152 | 7,537 | |
Loans and borrowings | Financial liabilities carried at amortized cost | Level 1 | |||
Disclosure of financial liabilities [line items] | |||
Fair Value | 0 | 0 | |
Loans and borrowings | Financial liabilities carried at amortized cost | Level 2 | |||
Disclosure of financial liabilities [line items] | |||
Fair Value | 10,729 | 7,588 | |
Loans and borrowings | Financial liabilities carried at amortized cost | Level 3 | |||
Disclosure of financial liabilities [line items] | |||
Fair Value | 0 | 0 | |
Financial assets at fair value through profit or loss, category | |||
Disclosure of financial assets [line items] | |||
Carrying Value | 48 | 112 | |
Financial assets at fair value through profit or loss, category | Level 1 | |||
Disclosure of financial assets [line items] | |||
Fair Value | 0 | 0 | |
Financial assets at fair value through profit or loss, category | Level 2 | |||
Disclosure of financial assets [line items] | |||
Fair Value | 48 | 54 | |
Financial assets at fair value through profit or loss, category | Level 3 | |||
Disclosure of financial assets [line items] | |||
Fair Value | 0 | 58 | |
Financial assets at fair value through profit or loss, category | Derivative financial instruments | |||
Disclosure of financial assets [line items] | |||
Carrying Value | 48 | 54 | |
Financial assets at fair value through profit or loss, category | Derivative financial instruments | Level 1 | |||
Disclosure of financial assets [line items] | |||
Fair Value | 0 | 0 | |
Financial assets at fair value through profit or loss, category | Derivative financial instruments | Level 2 | |||
Disclosure of financial assets [line items] | |||
Fair Value | 48 | 54 | |
Financial assets at fair value through profit or loss, category | Derivative financial instruments | Level 3 | |||
Disclosure of financial assets [line items] | |||
Fair Value | 0 | 0 | |
Financial assets at fair value through profit or loss, category | Advances to related parties and other assets | |||
Disclosure of financial assets [line items] | |||
Carrying Value | 0 | 58 | |
Financial assets at fair value through profit or loss, category | Advances to related parties and other assets | Level 1 | |||
Disclosure of financial assets [line items] | |||
Fair Value | 0 | 0 | |
Financial assets at fair value through profit or loss, category | Advances to related parties and other assets | Level 2 | |||
Disclosure of financial assets [line items] | |||
Fair Value | 0 | 0 | |
Financial assets at fair value through profit or loss, category | Advances to related parties and other assets | Level 3 | |||
Disclosure of financial assets [line items] | |||
Fair Value | $ 0 | $ 58 |
FINANCIAL INSTRUMENTS - Inter_2
FINANCIAL INSTRUMENTS - Interest Rates Used for Determining Fair Values (Details) - Interest rate, measurement input - Discounted cash flow | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives | Minimum | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Interest rates used for determining fair value | 0.02 | 0.022 |
Derivatives | Maximum | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Interest rates used for determining fair value | 0.025 | 0.023 |
Loans and borrowings | Minimum | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Interest rates used for determining fair value | 0.023 | 0.026 |
Loans and borrowings | Maximum | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Interest rates used for determining fair value | 0.04 | 0.056 |
FINANCIAL INSTRUMENTS - Summary
FINANCIAL INSTRUMENTS - Summary of Net Derivative Financial Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | |||
Current Asset | $ 40 | $ 54 | [1] |
Non-Current Asset | 8 | 0 | |
Disclosure of financial liabilities [line items] | |||
Current Liability | (6) | (6) | [1] |
Non-Current Liability | (3) | 0 | |
Total | 39 | 48 | |
Commodity, power, storage and rail financial instruments | |||
Disclosure of financial liabilities [line items] | |||
Current Liability | (6) | (2) | |
Non-Current Liability | (3) | 0 | |
Total | 30 | 42 | |
Foreign exchange | |||
Disclosure of financial liabilities [line items] | |||
Current Liability | 0 | (4) | |
Non-Current Liability | 0 | 0 | |
Total | 9 | 6 | |
Commodity, power, storage and rail financial instruments | |||
Disclosure of financial assets [line items] | |||
Current Asset | 34 | 44 | |
Non-Current Asset | 5 | 0 | |
Foreign exchange | |||
Disclosure of financial assets [line items] | |||
Current Asset | 6 | 10 | |
Non-Current Asset | $ 3 | $ 0 | |
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
FINANCIAL INSTRUMENTS - Sensiti
FINANCIAL INSTRUMENTS - Sensitivity Analysis of Market Risk (Details) $ in Millions | Dec. 31, 2019CAD ($)$ / bbl$ / gal$ / $$ / GJ |
Frac spread related Natural gas | |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Value of reasonably possible increase in price | $ / GJ | 0.25 |
Value of reasonably possible decrease in price | $ / GJ | 0.25 |
Increase (decrease) in earnings due to reasonably possible increase in price | $ 9 |
Increase (decrease) in earnings due to reasonably possible decrease in price | $ (9) |
Frac spread related NGL (includes propane, butane and condensate) | |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Value of reasonably possible increase in price | $ / gal | 0.10 |
Value of reasonably possible decrease in price | $ / gal | 0.10 |
Increase (decrease) in earnings due to reasonably possible increase in price | $ (43) |
Increase (decrease) in earnings due to reasonably possible decrease in price | $ 43 |
Foreign exchange interest rate | |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Value of reasonably possible increase in price | $ / $ | 0.10 |
Value of reasonably possible decrease in price | $ / $ | 0.10 |
Increase (decrease) in earnings due to reasonably possible increase in price | $ (46) |
Increase (decrease) in earnings due to reasonably possible decrease in price | $ 46 |
Product margin on Crude oil | |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Value of reasonably possible increase in price | $ / bbl | 2.50 |
Value of reasonably possible decrease in price | $ / bbl | 2.50 |
Increase (decrease) in earnings due to reasonably possible increase in price | $ (2) |
Increase (decrease) in earnings due to reasonably possible decrease in price | $ 2 |
Product margin on NGL | |
Disclosure Of Sensitivity Analysis For Types Of Market Risk [Line Items] | |
Value of reasonably possible increase in price | $ / gal | 0.10 |
Value of reasonably possible decrease in price | $ / gal | 0.10 |
GROUP ENTITIES (Details)
GROUP ENTITIES (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pembina Gas Services Limited Partnership | ||
Disclosure of subsidiaries [line items] | ||
Ownership Interest | 100.00% | 100.00% |
Pembina Holding Canada L.P. | ||
Disclosure of subsidiaries [line items] | ||
Ownership Interest | 100.00% | 100.00% |
Ruby Blocker LLC | ||
Disclosure of subsidiaries [line items] | ||
Ownership Interest | 100.00% | 100.00% |
Pembina Midstream Limited Partnership | ||
Disclosure of subsidiaries [line items] | ||
Ownership Interest | 100.00% | 100.00% |
Pembina Oil Sands Pipeline L.P. | ||
Disclosure of subsidiaries [line items] | ||
Ownership Interest | 100.00% | 100.00% |
Pembina Pipeline | ||
Disclosure of subsidiaries [line items] | ||
Ownership Interest | 100.00% | 100.00% |
Pembina Empress NGL Partnership | ||
Disclosure of subsidiaries [line items] | ||
Ownership Interest | 100.00% | 100.00% |
Ruby Blocker LLC | ||
Disclosure of subsidiaries [line items] | ||
Ownership Interest | 100.00% | 100.00% |
Pembina Cochin LLC | ||
Disclosure of subsidiaries [line items] | ||
Ownership Interest | 100.00% |
RELATED PARTIES - Equity Accoun
RELATED PARTIES - Equity Accounted Investees (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party [Abstract] | ||
Services provided | $ 82 | $ 42 |
Services received | 2 | 0 |
Interest income | 10 | 6 |
Advances to related parties | 131 | 135 |
Trade receivables and other | $ 17 | $ 12 |
RELATED PARTIES - Narrative (De
RELATED PARTIES - Narrative (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | ||
Disclosure of transactions between related parties [line items] | |||||
Proportion of ownership interest in entity (less than) | 1.00% | 1.00% | |||
Contributions to equity accounted investees | $ 206,000,000 | $ 58,000,000 | [1] | ||
Defined benefit plan, balance payable | 0 | 0 | |||
Canada Kuwait Petrochemical Corporation | |||||
Disclosure of transactions between related parties [line items] | |||||
Contributions to equity accounted investees | 58,000,000 | ||||
Ruby Pipeline | |||||
Disclosure of transactions between related parties [line items] | |||||
Contributions to equity accounted investees | $ 31 | $ 31 | |||
Fort Saskatchewan Ethylene Storage Limited Partnership | |||||
Disclosure of transactions between related parties [line items] | |||||
Contributions to equity accounted investees | $ 17,000,000 | $ 0 | |||
[1] | Pembina has applied IFRS 16 Leases at January 1, 2019 using the modified retrospective approach and has not restated comparative information. See Note 3. |
RELATED PARTIES - Key Managemen
RELATED PARTIES - Key Management Personnel Compensation (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party [Abstract] | ||
Short-term employee benefits | $ 10 | $ 10 |
Share-based compensation and other | 13 | 13 |
Total compensation of key management | $ 23 | $ 23 |
RELATED PARTIES - Post-employme
RELATED PARTIES - Post-employment Benefit Plans (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party [Abstract] | ||
Defined benefit plan | $ 20 | $ 19 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Contractual Obligations (Details) $ in Millions | Dec. 31, 2019CAD ($) |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | $ 18,142 |
Leases not yet commenced | 65 |
Leases | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 1,152 |
Loans and borrowings | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 14,565 |
Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 1,766 |
Other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 659 |
Less than 1 Year | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 1,844 |
Less than 1 Year | Leases | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 130 |
Less than 1 Year | Loans and borrowings | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 477 |
Less than 1 Year | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 1,128 |
Less than 1 Year | Other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 109 |
1 - 3 Years | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 2,897 |
1 - 3 Years | Leases | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 237 |
1 - 3 Years | Loans and borrowings | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 2,379 |
1 - 3 Years | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 123 |
1 - 3 Years | Other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 158 |
3 - 5 Years | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 3,642 |
3 - 5 Years | Leases | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 179 |
3 - 5 Years | Loans and borrowings | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 3,337 |
3 - 5 Years | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 33 |
3 - 5 Years | Other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 93 |
After 5 Years | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 9,759 |
After 5 Years | Leases | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 606 |
After 5 Years | Loans and borrowings | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 8,372 |
After 5 Years | Construction commitments | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | 482 |
After 5 Years | Other | |
Disclosure of contingent liabilities [line items] | |
Total contractual obligations | $ 299 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019CAD ($)MWMBbls | Dec. 31, 2019USD ($)MWMBbls | Dec. 31, 2018CAD ($) | |
Disclosure of contingent liabilities [line items] | |||
Contractual obligation | $ 18,142 | ||
Letters of credit outstanding, amount | $ 103 | $ 69 | |
Natural Gas Liquids | Minimum | |||
Disclosure of contingent liabilities [line items] | |||
Commitments maturity, term (years) | 1 year | ||
Natural Gas Liquids | Maximum | |||
Disclosure of contingent liabilities [line items] | |||
Commitments maturity, term (years) | 10 years | ||
Natural Gas | Not More than Nine Years | Minimum | |||
Disclosure of contingent liabilities [line items] | |||
Commitments, quantity secured (mbpd) | MBbls | 20 | 20 | |
Natural Gas | Not More than Nine Years | Maximum | |||
Disclosure of contingent liabilities [line items] | |||
Commitments, quantity secured (mbpd) | MBbls | 175 | 175 | |
Electrical Power | Minimum | |||
Disclosure of contingent liabilities [line items] | |||
Commitments maturity, term (years) | 1 year | ||
Electrical Power | Maximum | |||
Disclosure of contingent liabilities [line items] | |||
Commitments maturity, term (years) | 25 years | ||
Electrical Power | Not More than Twenty Four Years | Maximum | |||
Disclosure of contingent liabilities [line items] | |||
Daily power required (mw) | MW | 67 | 67 | |
Ruby Pipeline | Contingent liabilities related to joint ventures | Less than three months | |||
Disclosure of contingent liabilities [line items] | |||
Contractual obligation | $ 39 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - Revision of Proportionate Share of Capital Cost - Canada Kuwait Petrochemical Corporation $ in Billions | Jan. 07, 2020CAD ($) |
Disclosure of non-adjusting events after reporting period [line items] | |
Proportion of ownership interest in facilities | 100.00% |
Contractual capital commitments | $ 2.7 |
Uncategorized Items - pba-20191
Label | Element | Value |
Retained earnings [member] | ||
Equity | ifrs-full_Equity | $ (2,036,000,000) |
Non-controlling interests [member] | ||
Equity | ifrs-full_Equity | 60,000,000 |
Equity attributable to owners of parent [member] | ||
Equity | ifrs-full_Equity | 14,366,000,000 |
Accumulated other comprehensive income [member] | ||
Equity | ifrs-full_Equity | 317,000,000 |
Ordinary shares [member] | Issued capital [member] | ||
Equity | ifrs-full_Equity | 13,662,000,000 |
Preference shares [member] | Issued capital [member] | ||
Equity | ifrs-full_Equity | $ 2,423,000,000 |